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Input Tax Credit Cannot Be Denied to Bona Fide Buyer Due to Supplier’s Bogus Billing & Retrospective GST Registration Cancellation – Legal Position, Case Laws & Remedies

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Input Tax Credit Cannot Be Denied to Bona Fide Buyer Due to Supplier’s Bogus Billing & Retrospective GST Registration Cancellation – Legal Position, Case Laws & Remedies Introduction A recurring and high-stakes dispute under GST is denial of Input Tax Credit (ITC) to a genuine recipient merely because the supplier’s GST registration is cancelled retrospectively on allegations of bogus billing / fake invoicing. In many cases: The recipient purchased goods or availed services in the normal course of business Full payment including GST was made through banking channels ITC is reflected in GSTR-2A / GSTR-2B Later, the supplier’s registration is cancelled ab initio alleging fake billing The department issues a Show Cause Notice (SCN) proposing ITC reversal, interest and penalty This article explains: What the CGST Act, 2017 and Rules actually provide Whether ITC can be denied to a bona fide purchaser Supreme Court and High Court jurisprudence (in favour and against) Action steps to ...
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Section 74 GST SCN That Only States Figures Without Allegations of Fraud/Suppression: Supreme Court Grants Stay

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  Section 74 GST SCN That Only States Figures Without Allegations of Fraud/Suppression: Supreme Court Grants Stay Introduction The Supreme Court of India has intervened in a GST dispute, granting an interim stay on further proceedings arising from a GST Show Cause Notice (SCN) issued under Section 74 of the CGST Act, 2017 because the notice only contained numerical figures and did not set out specific allegations of fraud, wilful misstatement, or suppression of facts — the essential foundation for invoking Section 74. This decision clarifies that mere tabulation of figures without factual narrative is prima facie defective and unsustainable for the purposes of extended limitation and penalty under Section 74. What is Section 74 of the CGST Act? Section 74 deals with cases where: Tax has not been paid or has been short paid, Input Tax Credit (ITC) has been wrongly availed or utilised, “by reason of fraud, wilful misstatement or suppression of facts to evade tax...
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Section 86 – Liability in Case of Amalgamation or Merger of Companies

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Section 86 of CGST Act, 2017 – Liability in Case of Amalgamation or Merger of Companies Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Objective of Section 86 Section 86 ensures that GST liabilities do not lapse when two or more companies are amalgamated or merged. It fixes responsibility on the amalgamated or resulting company for tax dues of the transferor companies. 2. Statutory Provision – Section 86 Section 86: Where two or more companies are amalgamated or merged in pursuance of an order of a court or tribunal or otherwise, the amalgamated or resulting company shall be liable to pay any tax, interest or penalty due from the transferor companies up to the date of such amalgamation or merger, whether such dues are determined before or after the amalgamation or merger. 3. Key Elements of Section 86 Applies only to companies Requires amalgamation or merger Liability is statuto...
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