TaxTMI 
TaxTMI 
One of my client has received a DRC-01A u/s 74 notice from the SGST department. Now in this case we have the original tax invoicel and e-way bill (not available any other transporting proof) as per section 16(2) and have also made the payment within 180 days as per the rules. Now the registration of the consignor has been cancelled and it has also been cancelled from the date when the number was taken, so please guide me what should I do in this case.
Notice issued by SGST against DRC-01A u/s 74.
30 Jul 2026 
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Input tax credit eligibility requires proof of genuine goods receipt despite a supplier's retrospective registration cancellation.
Input tax credit following retrospective cancellation of a supplier's GST registration depends on whether the recipient can establish a genuine transaction and compliance with credit conditions. Original invoices, e-way bills and timely bank payment may support the claim but may not alone prove actual receipt of goods. The recipient should provide stock records, purchase ledgers, goods-receipt notes, consumption or sale records, and delivery evidence. Cancellation from the supplier's initial registration date may invite stricter scrutiny, with inadequate proof creating exposure to reversal of credit, interest and penalty. (AI Summary)
Input tax credit following retrospective cancellation of a supplier's GST registration depends on whether the recipient can establish a genuine transaction and compliance with credit conditions. Original invoices, e-way bills and timely bank payment may support the claim but may not alone prove actual receipt of goods. The recipient should provide stock records, purchase ledgers, goods-receipt notes, consumption or sale records, and delivery evidence. Cancellation from the supplier's initial registration date may invite stricter scrutiny, with inadequate proof creating exposure to reversal of credit, interest and penalty. (AI Summary)