Assessee Discharged Initial Burden of Establishing Genuineness of Transaction—Denial of ITC on the Ground of Retrospective Cancellation of Supplier’s Registration—P. Narayanan

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The Tax Publishers GST--Input Tax Credit Assessee Discharged Initial Burden of Establishing Genuineness of Transaction--Denial of ITC on the Ground of Retrospective Cancellation of Supplier's Registration P. Narayanan The learned author seeks to examine an issue as to whether where assessee discharged initial burden of establishing genuineness of transaction by placing documentary evidences like e-way bill, invoices and bank statement, the denial of input tax credit was valid. The above issue is being discussed in the light of relevant statutory provisions and a recent Calcutta High Court decision in the case of Shiva Chemicals & Anr. v. Asstt. Commr. of Revenue (2025) 122 ITPJ (G) 38 (Cal-HC). 1. Introduction Section 16 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with eligibility and conditions for taking input tax credit. As per sub-section (1) of section 16 of the Act, every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Input Tax Credit

Assessee Discharged Initial Burden of Establishing Genuineness of Transaction--Denial of ITC on the Ground of Retrospective Cancellation of Supplier's Registration

P. Narayanan

The learned author seeks to examine an issue as to whether where assessee discharged initial burden of establishing genuineness of transaction by placing documentary evidences like e-way bill, invoices and bank statement, the denial of input tax credit was valid. The above issue is being discussed in the light of relevant statutory provisions and a recent Calcutta High Court decision in the case of Shiva Chemicals & Anr. v. Asstt. Commr. of Revenue (2025) 122 ITPJ (G) 38 (Cal-HC).

1. Introduction

Section 16 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with eligibility and conditions for taking input tax credit.

As per sub-section (1) of section 16 of the Act, every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.