GSTAT Delhi: Supplier's Retrospective GST Cancellation Does Not Defeat Buyer's Input Tax Credit
The Goods and Services Tax Appellate Tribunal, Delhi State Bench, in Ram Manohar Meena Vs SRH Technologies (GSTAT Delhi), dismissed a departmental appeal and confirmed that an assessee who bought goods from a supplier registered on the invoice dates cannot lose input tax credit only because the supplier's registration was later cancelled with retrospective effect.
Background of the Dispute
The respondent, SRH Technologies, a proprietary concern trading in computer systems and peripherals, bought laptops from Maa Gayatri Infotech (legal name Ravina Devi), Dwarka, New Delhi, in September and October 2018. Five tax invoices were issued (dated 22.09.2018, 28.09.2018, 29.09.2018, 03.10.2018 and 04.10.2018) with a total value of Rs. 2,43,750, each charging central tax and State tax at 9 per cent. The credit availed was Rs. 37,184 for FY 2018-19.
The assessee's returns were scrutinised under Section 61. A notice in FORM GST ASMT-10 (28.03.2023), an intimation in FORM GST DRC-01A (26.10.2023) and Show Cause Notice No. 51/2023-24 dated 09.11.2023 under Section 73 followed. The only allegation was that the supplier's registration had been cancelled suo-moto retrospectively from the date of registration, so the credit was not permissible under Section 16. The notice did not allege that goods were not received, that invoices were not genuine, or that the supplier had not paid tax.