2026-VIL-934-RAJ
  1. Home
  2. 2026-VIL-934-RAJ

SGST High Court Cases

GST – Insolvent Supplier, Applicability of Ghanashyam Mishra & Sons (P.) Ltd. case - Eligibility to Input Tax Credit under Section 16(2)(c) of the CGST Act, 2017 - Insolvency Proceedings - Petitioner availed Input Tax Credit on basis that supplier had already paid tax. Supplier subsequently became insolvent and insolvency proceedings were initiated under Insolvency and Bankruptcy Code 2016 - Department failed to claim tax against supplier in insolvency proceedings and since tax liability remained unpaid, demand was imposed on Petitioner under Section 16(2)(c) of CGST Act, 2017 - Whether Petitioner can be held liable for tax unpaid by defaulting supplier - HELD – The Section 16(2)(c) of CGST Act is mandatory condition subject to Section 41 requiring that tax charged in respect of supply be actually paid to Government and unless same is paid, availing of ITC is prohibited – The purchasing dealer cannot be held entitled to claim Input Tax Credit unless all conditions up to clause (c) are satisfied. Burden lies on dealer to establish entitlement up to clause (c) as per Section 155 of CGST Act. Purchaser without ascertaining whether supplier paid tax should not have availed ITC and recovery of same becomes permissible once availed without supplier payment – The judgment in Ghanashyam Mishra & Sons (P.) Ltd., relied upon by learned counsel, deals with the consequences flowing from an approved resolution plan under the IBC and does not dispense with the statutory condition governing the entitlement to Input Tax Credit of purchasing dealer under Section 16(2)(c) of the CGST Act – The writ petition is dismissed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GST Critical issues: ITC on...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?