Purchaser Not Liable for Supplier’s GST Default Key Insights from the Allahabad High Court Judgment
I. Case Overview Parties Involved: Petitioner: R.T. Infotech Respondents: Additional Commissioner Grade-2 & others Court: Allahabad High Court Judge: Hon’ble Justice Piyush Agrawal Subject Matter: Denial of Input Tax Credit (ITC) to the purchaser due to the seller’s failure to deposit GST II. Core Legal Issue Whether a bona fide purchaser, who has paid GST on valid tax invoices via banking channels (RTGS), can be denied ITC merely due to the supplier’s default in depositing such tax with the government. III. Factual Matrix R.T. Infotech, a registered dealer, purchased mobile recharge coupons from M/s Bharti Airtel Ltd. in FY 2017-18 against 7 valid tax invoices totalling ₹1,58,46,502 , with claimed ITC of ₹28,52,370. GST component (CGST + SGST = ₹14,26,185 each) was paid via RTGS . ASMT-10 notice was issued under Section 70; the petitioner responded with ASMT-11, asserting payment through banking channels. Despite the reply, a show ...