https://www.taxtmi.com/article/detailed?id=17601 Section 16(2)(c) of the CGST Act makes input tax credit conditional on actual payment of tax to the Government, but cannot be applied mechanically against a genuine purchasing dealer solely because a supplier defaults or faces retrospective registration cancellation. Before ITC reversal, the proper officer must examine the transaction's genuineness, the recipient's evidence, the supplier's default, available recovery action against the supplier, and any direct link between the recipient and fraud. Supplier cancellation, return discrepancies, or alerts may trigger inquiry but cannot independently justify denial. en-us Mon, 19 Oct 2026 09:55:03 +0530 Mon, 19 Oct 2026 09:55:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=17601 Section 16(2)(c) of the CGST Act makes input tax credit conditional on actual payment of tax to the Government, but cannot be applied mechanically against a genuine purchasing dealer solely because a supplier defaults or faces retrospective registration cancellation. Before ITC reversal, the proper officer must examine the transaction's genuineness, the recipient's evidence, the supplier's default, available recovery action against the supplier, and any direct link between the recipient and fraud. Supplier cancellation, return discrepancies, or alerts may trigger inquiry but cannot independently justify denial. Articles Goods and Services Tax - GST Mon, 19 Oct 2026 09:55:03 +0530 https://www.taxtmi.com/article/detailed?id=17601