Input tax credit under GST requires proof of supplier tax payment; reading down of the condition was refused

Input tax credit under GST requires proof of supplier tax payment; reading down of the condition was refused https://www.taxtmi.com/highlights?id=99420 Section 16(2)(c) of the CGST Act was upheld as a cumulative condition for input tax credit, and the purchaser must prove that tax charged on the supply was actually paid to the Government. The Court held that clauses (a) to (d) of Section 16(2) must be read conjointly, that ITC is a statutory concession rather than a vested right, and that non-payment by the supplier cannot be ignored merely because the recipient has the invoice and goods or services. Reading down was refused because the provision is clear, fits the GST scheme, and preserves revenue integrity against fraudulent transactions. en-us Sat, 02 May 2026 07:43:01 +0530 Sat, 02 May 2026 07:43:02 +0530 TaxTMI RSS Generator Input tax credit under GST requires proof of supplier tax payment; reading down of the condition was refused https://www.taxtmi.com/highlights?id=99420 Section 16(2)(c) of the CGST Act was upheld as a cumulative condition for input tax credit, and the purchaser must prove that tax charged on the supply was actually paid to the Government. The Court held that clauses (a) to (d) of Section 16(2) must be read conjointly, that ITC is a statutory concession rather than a vested right, and that non-payment by the supplier cannot be ignored merely because the recipient has the invoice and goods or services. Reading down was refused because the provision is clear, fits the GST scheme, and preserves revenue integrity against fraudulent transactions. Highlights GST Sat, 02 May 2026 07:43:01 +0530 https://www.taxtmi.com/highlights?id=99420