GST DAILY – 383 : NO ITC FOR PURCHASING DEALER UNLESS SUPPLIER DEPOSITS TAX WITH GOVERNMENT

NO ITC FOR PURCHASING DEALER UNLESS SUPPLIER DEPOSITS TAX WITH GOVERNMENT

THE HON’BLE KERALA HIGH COURT IN THE CASE OF Tirupati Balaji Traders V/s Union of India ,decided on 24-7-2024

 👉 Issue:-

✔️ What about ITC if the purchasing dealer paid the entire amount of tax to the supplying dealer but they could not deposit in the government exchequer?

👉 TheHon’ble High Court Judgement:-

✔️ Right to avail input tax credit is a conditional right; assessee purchasing dealer, who had paid entire amount of tax to supplying dealer could not be given benefit of input tax credit unless amount of tax collected from assessee had actually been paid to exchequer.

The Court dismissed the writ petition.