https://www.taxtmi.com/circulars?id=65957 Clarifies that issuance of tax invoices without actual supply does not constitute a taxable "supply" and therefore does not attract tax demand against the issuer, though the issuer is liable to penal action for issuing invoices without supply. A recipient who fraudulently avails and utilises ITC without receipt of goods or services is liable to demand and recovery of ITC with interest and penal action for fraudulent availment. If that recipient passes on credit by issuing invoices without supply, no tax demand arises for non-existent outward supply, but penal action applies for issuing invoices without supply and for taking/utilising ineligible ITC; other consequences may follow on facts. en-us Wed, 06 Jul 2022 00:00:00 +0530 Fri, 21 Oct 2022 18:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=65957 Clarifies that issuance of tax invoices without actual supply does not constitute a taxable "supply" and therefore does not attract tax demand against the issuer, though the issuer is liable to penal action for issuing invoices without supply. A recipient who fraudulently avails and utilises ITC without receipt of goods or services is liable to demand and recovery of ITC with interest and penal action for fraudulent availment. If that recipient passes on credit by issuing invoices without supply, no tax demand arises for non-existent outward supply, but penal action applies for issuing invoices without supply and for taking/utilising ineligible ITC; other consequences may follow on facts. Circulars GST - States Wed, 06 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/circulars?id=65957