https://www.taxtmi.com/forum/issue?id=120266 Department issued a show cause notice seeking reversal of input tax credit with interest and penalty because the supplier neither filed returns nor paid tax; legal principle cited is that ITC is not allowable unless tax has been actually paid to the government, and administrative guidance for the years in question supports that requirement; insolvency of the supplier complicates relief but does not automatically prevent departmental recovery, so contesting the demand through appeals or courts may be necessary. en-us Fri, 18 Jul 2025 21:34:01 +0530 Sun, 03 Aug 2025 18:14:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=120266 Department issued a show cause notice seeking reversal of input tax credit with interest and penalty because the supplier neither filed returns nor paid tax; legal principle cited is that ITC is not allowable unless tax has been actually paid to the government, and administrative guidance for the years in question supports that requirement; insolvency of the supplier complicates relief but does not automatically prevent departmental recovery, so contesting the demand through appeals or courts may be necessary. Discussion-Forum GST Fri, 18 Jul 2025 21:34:01 +0530 https://www.taxtmi.com/forum/issue?id=120266