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.

Section 168A of the Income Tax Act provides relief to taxpayers during emergencies like pandemics or natural disasters by allowing the government to extend tax-related deadlines. This section helps avoid penalties and reduces the compliance burden when normal operations are disrupted. It was widely used during the COVID-19 pandemic to extend deadlines for filing returns and completing assessments. While it offers temporary relief, the extensions are time-bound and rely on government notifications. This provision ensures flexibility for taxpayers during challenging times.

This blog provides a comprehensive overview of the recent amendments to Section 16(4) of the Central Goods and Services Tax (CGST) Act, which have significantly impacted taxpayers in India. It highlights the key changes, including the extended time limits for availing Input Tax Credit (ITC), the conditional relaxation for cases of cancelled and revoked registrations, and the clarification on the applicability of Section 16(4) for ITC on Reverse Charge Mechanism supplies. The analysis delves into the implications of these amendments, emphasizing how they address the concerns of taxpayers and foster a more equitable and efficient GST regime. The blog also examines the judicial precedents that have upheld the constitutionality of Section 16(4), further solidifying the legal framework surrounding these provisions. By addressing these critical updates to the GST landscape, this blog aims to provide valuable insights for businesses, tax professionals, and policymakers, enabling them to navigate the evolving GST ecosystem more effectively.