Input tax credit reversals remain subject to supplier-default recovery mechanisms, bona fide recipient safeguards, and lawful demand requirements.
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. (AI Summary)

GST on prize money: absence of direct consideration means prize awards may not qualify as taxable supplies under GST.
Prize or grant receipts awarded to event winners lack a direct and immediate nexus to participation and therefore do not constitute consideration for a supply under GST; such prize money is not taxable as a supply and recipients are not entitled to input tax credit for those receipts. An appellate authority applying this principle in the context of horse-racing held that only winning owners receive prize money, so no supply arises from their participation. Divergent rulings on betting and commission-based taxation underscore the need for administrative clarification. (AI Summary)

Cross charge between distinct GST registrations creates taxable supplies requiring valuation and potential input tax credit entitlement.
Cross charge arises because separate GST registrations under the same PAN are distinct persons, making inter registration supplies taxable even without consideration. Valuation follows Section 15 and Rule 28: open market value, value of like goods/services, then Rule 30 or Rule 31; goods for further supply may be valued at ninety percent of recipient's onward price, and if recipient is eligible for full input tax credit the invoice value is deemed open market value. Employee services to employer are excluded under Schedule III, so salary recharges generally should not be cross charged. (AI Summary)