Madras HC ruled that just presenting the invoices or the payment made by cheques is not enough, and to claim ITC, the supplier must have deposited the tax to the government.
Nidhi | Jun 26, 2025 |
No Input Tax Credit Allowed If Supplier fails to Pay GST: High Court
The applicant, filed a petition as the GST department denied the input their Input Tax Credit (ITC). However, the court refused the appeal made by the petitioner.
Global Offset Printers contended that they have paid GST to the supplier on the supplies bought by the petitioner. However, the supplier did not deposit the tax to the government. Due to which the GST department passed an order demanding that the petitioner pay the required tax.
The Madras High Court agreed with the GST Department and rejected the petition filed by the petitioner. The court cited the Supreme Court judgement in the case of the State of Karnataka vs. M/s.Ecom Gill Coffee Trading Private Limited, which ruled that just presenting the invoices or the payment made by cheques is not enough and cannot be said to be discharging the burden of proof; The genuineness of the transaction has to be proved as the burden to prove the genuineness of transaction would be upon the purchasing dealer.
This means that to claim the ITC, make sure your supplier has paid the GST to the government. One cannot claim ITC showing just invoices.
However, the court granted liberty to the petitioner to file a statutory appeal to the Appellate Authority within 30 days.
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