{"id":75320,"date":"2026-03-31T08:27:10","date_gmt":"2026-03-31T08:27:10","guid":{"rendered":""},"modified":"2026-03-31T08:27:10","modified_gmt":"2026-03-31T08:27:10","slug":"input-tax-credit-cannot-be-denied-to-bona-fide-recipients-merely-because-the-supplier-failed-to-remit-tax","status":"publish","type":"post","link":"https:\/\/goodsandservicetax.in\/GST\/?p=75320","title":{"rendered":"Input tax credit cannot be denied to bona fide recipients merely because the supplier failed to remit tax."},"content":{"rendered":"<p>Input tax credit cannot be denied to bona fide recipients merely because the supplier failed to remit tax.<br \/>Case-Laws<br \/>GST<br \/>Section 16(2)(c) of the CGST\/KGST Act and Rule 36(4) of the CGST\/KGST Rules were read down, not struck down, so that input tax credit is not denied to a bona fide recipient who has satisfied the other statutory conditions merely because the supplier failed to remit tax to the Government. The High Court accepted that a purchaser cannot be required to ensure the supplier&#39;s tax payment, as that would impose an impossible burden and penalise the recipient for another&#39;s default. The provisions were therefore confined to non-bona fide, collusive or fraudulent transactions, and ITC remains available to genuine recipients affected only by supplier default.<br \/> TMI Updates &#8211; Highlights, quick notes, marquee, annotation, news, alerts <\/p>\n<p align=\"center\">=  =  =  =  =  =  =  =<\/p>\n<p align=\"center\"><strong>Plain text (Extract) only<\/strong><BR>For full text:-<a href=\"https:\/\/www.taxtmi.com\/highlights?id=98252\">Visit the Source <\/a><\/p>\n<p align=\"center\">=  =  =  =  =  =  =  =<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Input tax credit cannot be denied to bona fide recipients merely because the supplier failed to remit tax.Case-LawsGSTSection 16(2)(c) of the CGST\/KGST Act and Rule 36(4) of the CGST\/KGST Rules were read down, not struck down, so that input tax credit &#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-75320","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/75320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=75320"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/75320\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=75320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=75320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=75320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}