https://www.taxtmi.com/caselaws?id=435101 The AAR Punjab ruled that a purchaser cannot claim Input Tax Credit on purchases where the immediate seller discharged tax liability but preceding sellers in the transaction chain failed to discharge their obligations. Under Section 16(2)(c) of CGST Act, ITC eligibility requires actual tax payment by all sellers in the supply chain, either through cash or input tax credit utilization. Despite the purchaser possessing valid invoices, making payments through banking channels, and having no collusion with sellers, the non-payment of tax by any seller in the chain disqualifies ITC claim. The application was disposed of accordingly. en-us Fri, 03 Feb 2023 00:00:00 +0530 Mon, 14 Apr 2025 17:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=435101 The AAR Punjab ruled that a purchaser cannot claim Input Tax Credit on purchases where the immediate seller discharged tax liability but preceding sellers in the transaction chain failed to discharge their obligations. Under Section 16(2)(c) of CGST Act, ITC eligibility requires actual tax payment by all sellers in the supply chain, either through cash or input tax credit utilization. Despite the purchaser possessing valid invoices, making payments through banking channels, and having no collusion with sellers, the non-payment of tax by any seller in the chain disqualifies ITC claim. The application was disposed of accordingly. Case-Laws GST Fri, 03 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=435101