{"id":1711,"date":"2025-11-01","guid":{"rendered":"https:\/\/APNOKACA.com\/blog\/?p=105601"},"modified":"2025-11-01","slug":"big-relief-for-taxpayers-supreme-court-protects-buyers-from-seller-s-default","status":"publish","type":"post","link":"https:\/\/APNOKACA.com\/blog\/big-relief-for-taxpayers-supreme-court-protects-buyers-from-seller-s-default","title":{"rendered":"Big relief for taxpayers: Supreme Court protects buyers from seller\u2019s default"},"content":{"rendered":"\n
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<\/i> GST <\/a>

Big relief for taxpayers: Supreme Court protects buyers from seller’s default <\/h1> <\/div>

The Supreme Court of India has held that a genuine buyer cannot be denied ITC merely because the seller failed to deposit tax. In M\/s Shanti Kiran India Pvt Ltd vs Commissioner, Trade & Tax, Delhi (October 9, 2025), the Court emphasized fairness: action should target the defaulting seller, not the compliant purchaser. While the case arose under the Delhi VAT Act, its reasoning strongly influences GST disputes under Section 16(2)(c). Businesses gain a constitutional shield against automatic ITC denials but must continue robust documentation, vendor checks, and genuine transactions. Example: if you paid ₹100 in tax against a valid invoice and acted in good faith, your ITC right stands. <\/p>

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<\/div> Krishna Gopal Varshney <\/a>

An editor at Myitronline<\/p> <\/div>