High Court: ITC Cannot be Denied for Retrospective Cancellation of Supplier's GSTN:

High Court rules that ITC cannot be denied solely due to retrospective GSTN cancellation of the supplier without verifying the genuineness of the transaction.

Retrospective GST Cancellation Not Enough to Reject ITC

CA Pratibha Goyal

Jun 19, 2025

Last update on Jun 19, 2025

High Court: ITC Cannot be Denied for Retrospective Cancellation of Supplier's GSTN In one of the GST matters, the sole ground on which the input tax credit (ITC) claimed has been denied to the petitioner is that the supplier's GST registration has been cancelled with retrospective effect. There was no material on record indicating that either the Assessing Officer or the Appellate Authority had considered whether the transaction in question was genuine and a straightaway notice under Section 16(2) of the CGST Act had been issued. Consider the genuineness of the transaction: High Court The Honourable Court was of the view that before taking any action in the matter, considering the genuineness of the transaction, the same could have been determined only after examining all the relevant documents, which do not appear to have been done in the instant case. Final Order As a result, the matter is remanded back to the Adjudicating Authority, which shall decide the matter after examining all the relevant documents

About Author

CA Pratibha Goyal

Co Founder

CA Pratibha Goyal is Chartered Accountant qualified in 2016, is a Member of The Institute of Chartered Accountants of India having wide experience in the field of Auditing, Taxation, ROC, GST and Secretarial matters etc. She has written over a thousand articles & has made several videos on topics related to Auditing & Taxation. As a Speaker she has delivered various sessions on various branches of NIRC of ICAI.