Supreme Court affirms validity of Section 16(2)(c): ITC is admissible only where the supplier has actually remitted tax to the Government, Provision held neither arbitrary nor unconstitutional
A batch of writ petitions led by Maruti Enterprise challenged the constitutional validity of Section 16(2)(c) of the CGST Act, 2017 before the Hon’ble Gujarat High Court. The petitioners had been denied Input Tax Credit ("ITC") in cases where the supplier had failed to deposit the GST collected from them with the Government, despite the purchasers having paid the full invoice value including GST and having undertaken bona fide transactions.