https://www.taxtmi.com/circulars?id=70855 Fake-invoice transactions are assessed by distinguishing nonexistent supplies from fraudulent ITC use. Issuing an invoice without actual supply does not create tax liability or attract demand recovery against the issuer, but attracts penalty for issuing such invoice. A recipient that avails and uses ITC without receiving goods or services to pay tax on genuine outward supplies faces recovery of ineligible ITC, interest and penalty. Where fake ITC is merely passed onward through invoices without supply, demand recovery is not required in the specified case, though penalties apply for invoice issuance without supply and wrongful ITC use. en-us Sat, 16 Jul 2022 00:00:00 +0530 Thu, 20 Aug 2026 10:40:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=70855 Fake-invoice transactions are assessed by distinguishing nonexistent supplies from fraudulent ITC use. Issuing an invoice without actual supply does not create tax liability or attract demand recovery against the issuer, but attracts penalty for issuing such invoice. A recipient that avails and uses ITC without receiving goods or services to pay tax on genuine outward supplies faces recovery of ineligible ITC, interest and penalty. Where fake ITC is merely passed onward through invoices without supply, demand recovery is not required in the specified case, though penalties apply for invoice issuance without supply and wrongful ITC use. Circulars GST - States Sat, 16 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/circulars?id=70855