https://www.taxtmi.com/circulars?id=66406 Issuing tax invoices without actual supply is not a "supply" and does not create tax demand under the DGST Act for the issuer, but the issuer is punishable for issuing invoices without supply. A recipient who fraudulently avails and utilizes ITC without receipt of goods/services is liable to demand and recovery of the ITC with interest and penal action under the fraudulent-ITC provision, with exclusivity of that penalty. If such a recipient passes on the credit by issuing invoices without supply, no tax demand arises for nonexistent outward supply, but penal provisions for issuing fake invoices and wrongful availment/utilization of ITC apply, and others who benefit may also be penalised. en-us Tue, 11 Oct 2022 00:00:00 +0530 Mon, 12 Jun 2023 18:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=66406 Issuing tax invoices without actual supply is not a "supply" and does not create tax demand under the DGST Act for the issuer, but the issuer is punishable for issuing invoices without supply. A recipient who fraudulently avails and utilizes ITC without receipt of goods/services is liable to demand and recovery of the ITC with interest and penal action under the fraudulent-ITC provision, with exclusivity of that penalty. If such a recipient passes on the credit by issuing invoices without supply, no tax demand arises for nonexistent outward supply, but penal provisions for issuing fake invoices and wrongful availment/utilization of ITC apply, and others who benefit may also be penalised. Circulars GST - States Tue, 11 Oct 2022 00:00:00 +0530 https://www.taxtmi.com/circulars?id=66406