Taxontips
No Result
View All Result
Sunday, May 28, 2023
Login/ Register
  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
Talk to an Expert
  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
No Result
View All Result
Taxontips
No Result
View All Result

ITC cannot be disallowed to purchaser if seller has collected tax but not paid to Government – Madras High Court

GST expert by GST expert
November 3, 2020
in Case Laws, GST news
0
ITC cannot be disallowed to purchaser if seller has collected tax but not paid to Government – Madras High Court
453
SHARES
5.7k
VIEWS
image_pdfPDFimage_printPrint

The judgement was passed in the case of M/s. Sri Ranganathar Valves Private Limited by Madras High court and the judgement was pronounced on 02.09.2020.

In the above judgement Input tax credit were related to earlier year’s 2013 and 2014 wherein Assessee has paid tax amount to the supplier but the supplier failed to deposit the same with government.

On this, the hon’ble High court held that Input tax credit cannot be disallowed on ground that seller has not paid tax to Government, when purchaser is able to prove that seller has collected tax and issued invoices to purchaser.

Section 16 of the Central Goods and Services Tax Act, 2017/Rule 3 of the Cenvat Credit Rules, 2004 – Input tax credit – Whether Input tax credit cannot be disallowed on ground that seller has not paid tax to Government, when purchaser is able to prove that seller has collected tax and issued invoices to purchaser.

There have been numerous similar judgement in the past in previous laws where ITC was allowed to genuine buyers. Some of which are as under:

1. The Punjab & Haryana High court has delivered a landmark judgment namely Gheru Lal Bal Chand Vs. State of Haryana and another

2. Hon’ble High Court of Delhi in the case of Arise India Limited and others Vs. Commissioner of Trade & Taxes, Delhi and others [TS-314-HC-2017(Del)-VAT](“Arise India case”).

3. Hon’ble Madras High Court in the case of State of Madras Vs. Raman & Co. [1974] 33 STC).

4. Sri Vinayaga Agencies vs. Assistant Commissioner (CT), Vadapalani-I Assessment Circle, Chennai and another reported in (2013) 60 VST 283 (Mad).

5. Hon’ble Madras High Court In the decision cited on the side of the petitioner in 2016-TIOL-489-HC-MAD-VAT (Britannia Industries Ltd v. the Deputy Commissioner (CT)-III (FAC), Chennai-8).

6. In the case of M/s New Dhiraj Industries Vs. The State of Telangana in TA Nos. 161/2011, 162/2011, 248/2015 & 249/2015 dated 20.08.2018.

 

However even after so many judgements it is still a matter of debate because the Assessing officer won’t allow the input tax credit to the taxpayer till the time ITC (Input tax credit) is available in GSTR 2A as is mentioned in rule 36.

Rule 36 of CGST rules restrict credit upto 10% of total eligible credit where same is not available in GSTR 2A.

Thus, because of above rule practically you won’t be allowed ITC of GST paid even though you have proper invoice. One will have to always fight for ITC even after being a honest taxpayer.

 

To download full order CLICK HERE.

image_pdfPDFimage_printPrint
Tags: High court judgementlatest case law
Previous Post

Another relief from ICAI by waiver of condonation fees w.e.f. 01.11.2020 to 31.12.2020

Next Post

GSTR – 9 and GSTR – 9C under GST | A brief understanding

Related Posts

Annual return optional for F.Y. 2017-18 and 2018-19 for Turnover below Rs. 2 crore
GST news

Instructions for conducting scrutiny of returns for FY 2019-20 onwards under GST [Read instructions]

May 27, 2023
GST registration
GST news

GUIDELINES FOR SPECIAL ALL-INDIA DRIVE UNDER GST

May 24, 2023
GST registration
GST news

GST revenue collection for April 2023 highest ever at Rs 1.87 lakh crore

May 13, 2023
GST registration
GST news

Turnover limit for E-invoicing reduced to Rs. 5 crore from Rs. 10 crore [Read notification]

May 11, 2023
GST on GTA services – A brief analysis
GST news

CBIC extends last date for exercise of option by GTA to pay GST under forward charge [Read notification]

May 10, 2023
Income tax Appellate Tribunal (ITAT) to not function from 17.03.2020 to 27.03.2020
Case Laws

Benefit of DTAA cannot be taken while making payment of DDT by a company [Read order]

April 22, 2023
Next Post
GSTR 9 & 9A is compulsory for all taxpayer’s in F.Y. 2017-18 or else you won’t be able to edit it in future.

GSTR - 9 and GSTR - 9C under GST | A brief understanding

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Google Custom search

Recent Posts

  • Instructions for conducting scrutiny of returns for FY 2019-20 onwards under GST [Read instructions]
  • Extension in time limit for filing Form 10A, 10AB, 10BD, 10 etc. in relation to trust under Income tax act
  • GUIDELINES FOR SPECIAL ALL-INDIA DRIVE UNDER GST
  • Government issues guidelines to calculate net winning for section 194BA of the Act [Read circular]
  • Do you need to panic if you have Rs. 2000 note with you?

Recent Comments

  • Notification under PMLA by Ministry of Finance which could affect CA, CS and CMA - Taxontips on CA, CS and CMA now under PMLA. KYC of clients required
  • ADMIN on My Resolved Question
  • ADMIN on My First Question
  • ADMIN on My First Question
  • proxies shared on How to make correction in Income Tax Challan paid?

Categories

  • Budget News
  • Business & Other News
  • Case Laws
  • GST news
  • Income Tax News
  • News

Browse Topics by Date

May 2023
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031  
« Apr    

Recent Notification

Annual return optional for F.Y. 2017-18 and 2018-19 for Turnover below Rs. 2 crore

Instructions for conducting scrutiny of returns for FY 2019-20 onwards under GST [Read instructions]

May 27, 2023
Amendment in provisions relating to taxability of income of trust by Finance Act, 2021

Extension in time limit for filing Form 10A, 10AB, 10BD, 10 etc. in relation to trust under Income tax act

May 26, 2023

RSS Taxontips

  • Instructions for conducting scrutiny of returns for FY 2019-20 onwards under GST [Read instructions]
  • Extension in time limit for filing Form 10A, 10AB, 10BD, 10 etc. in relation to trust under Income tax act
  • GUIDELINES FOR SPECIAL ALL-INDIA DRIVE UNDER GST
  • Government issues guidelines to calculate net winning for section 194BA of the Act [Read circular]
  • Do you need to panic if you have Rs. 2000 note with you?
  • CBDT proposes changes to Rule 11UA in respect of ANGEL TAX- Also proposes to notify Excluded Entities
  • Rs. 2000 note removed from Circulation Will continue as Legal Tender
  • International payments through credit card will now attract 20% TCS under Income tax
  • Deferment of second phase of Peer Review Mandate for CA Firms
  • GST revenue collection for April 2023 highest ever at Rs 1.87 lakh crore

Categories

  • Budget News
  • Business & Other News
  • Case Laws
  • GST news
  • Income Tax News
  • News

Site menu

  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
Taxontips

TaxOnTips provides you all tax related solutions in easy way and update you with its regular updates & notifications Visit us for details.
We are based in Jaipur, India

© 2019-2023 Taxontips.com - Tax assistance at your Fingertips

No Result
View All Result
  • Login/Signup
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
  • Ask an expert/ Talk to an expert
  • Privacy Policy
  • Terms of use

© 2019-2023 Taxontips.com - Tax assistance at your Fingertips

Book Phone consultation with expert

Sitting home or at your office and don't have time to visit CA's office or don't know where to consult CA. Book your consultation with an expert practicing Chartered Accountant and get your query solved.

Book a phone consultation for 30 minutes with our expert at a very basic cost.

Book consultation

No thanks, I'm not interested!