Input tax credit mismatches require proof of supplier tax payment, while fraud-based recovery needs evidence of deliberate evasion.
Case-Laws
GST
GSTR-2A mismatches do not, by themselves, establish wrongful input tax credit; supplier tax payment must be proved through prescribed certificates or other cogent evidence. Amended supplier entries and ledger extracts may support verification, while certificates cannot be rejected without identified defects or verification. Credit unsupported by proof of supplier payment remains inadmissible. Section 75(7) bars confirmation of a demand on grounds outside the show cause notice. Fraud-based recovery requires foundational facts establishing fraud, wilful misstatement or suppression with intent to evade tax; a detected discrepancy or missing defence evidence cannot establish those facts. Where the fraud charge fails, section 75(2) permits redetermination under section 73 within applicable time limits. Interest on inadmissible credit is payable only if the credit was utilised.
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