GST No is cancelled, ITC cannot be rejected : HC

When a supplier’s GST Number is cancelled with retrospective effect, ITC cannot be rejected: HC

• By their impugned order dated December 27, 2021, the concerned GST Officer (The Respondent) in this case denied the petitioner the benefit of Input Tax Credit (ITC) on their purchase of the goods in question from the suppliers and demanded that they pay the penalty and interest under the applicable provisions of the GST Act, on the grounds that the registration of the suppliers in question was incomplete. The petitioner was upset by this action and filed a petition.
• Petitioners (i.e Sanchita Kundu & Anr) in support of their point of contention have properly relied on unreported judgment of Calcutta High Court dated 13th Dec, 2021 in a which is a similar case in matter related of M/s. LGW Industries Limited & Ors. Vs. Union of India & Ors.
• If it is determined via verification and consideration of the relevant documentation that all the purchases and transactions in question are genuine, supported by valid documents, & That respective transactions in question were completed prior to the cancellation of those suppliers’ registration, as well as if the facts of the petitioners are similar to those of the Supreme Court, various High Courts & this Court judgments on which the petitioners intend to rely,

Sanchita Kundu & Anr. Vs Assistant Commissioner of State Tax (Calcutta High Court)- Summary : 

• Input Tax Credit cannot be denied only on the ground of GST Registration of Suppliers is Cancellation:
• Honorable High Court of Calcutta has decided that ITC cannot be denied in case of transactions is genuine with suppliers whose Cancellation of GST registration is made by dept. 

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