https://www.taxtmi.com/article/detailed?id=16117 Input tax credit under GST cannot be denied to a bona fide recipient merely because the supplier later defaults in payment of tax or has its registration cancelled at a later stage, where the purchaser has otherwise complied with the conditions under Section 16(2) and the transaction is not collusive or fraudulent. The Karnataka High Court treated the buyer's genuine transaction as protected from disallowance under Section 16(2)(c), and read that provision down so that it applies only where the transaction is not bona fide or is designed to defraud revenue. en-us Wed, 01 Apr 2026 07:51:57 +0530 Wed, 01 Apr 2026 07:51:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=16117 Input tax credit under GST cannot be denied to a bona fide recipient merely because the supplier later defaults in payment of tax or has its registration cancelled at a later stage, where the purchaser has otherwise complied with the conditions under Section 16(2) and the transaction is not collusive or fraudulent. The Karnataka High Court treated the buyer's genuine transaction as protected from disallowance under Section 16(2)(c), and read that provision down so that it applies only where the transaction is not bona fide or is designed to defraud revenue. Articles Goods and Services Tax - GST Wed, 01 Apr 2026 07:51:57 +0530 https://www.taxtmi.com/article/detailed?id=16117