https://www.taxtmi.com/article/detailed?id=17147 Section 16(2)(c) is constitutionally valid, but reversal of input tax credit for supplier default may be followed by re-availment once the supplier pays tax under the post-2022 framework. Recovery issues remain distinct from entitlement to credit. Administrative guidance supports pursuing the defaulting supplier first, subject to exceptional cases, while bona fide conduct and the sufficiency of a demand require factual examination. Businesses should monitor supplier compliance, reconcile GSTR-2B, observe Rule 37A reversal timelines, preserve transaction and movement evidence, and seek details of recovery action against suppliers. en-us Mon, 10 Aug 2026 08:38:29 +0530 Mon, 10 Aug 2026 08:38:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=17147 Section 16(2)(c) is constitutionally valid, but reversal of input tax credit for supplier default may be followed by re-availment once the supplier pays tax under the post-2022 framework. Recovery issues remain distinct from entitlement to credit. Administrative guidance supports pursuing the defaulting supplier first, subject to exceptional cases, while bona fide conduct and the sufficiency of a demand require factual examination. Businesses should monitor supplier compliance, reconcile GSTR-2B, observe Rule 37A reversal timelines, preserve transaction and movement evidence, and seek details of recovery action against suppliers. Articles Goods and Services Tax - GST Mon, 10 Aug 2026 08:38:29 +0530 https://www.taxtmi.com/article/detailed?id=17147