Claiming GST ITC from Non-existent Firm Without Genuine Supply comes under Purview of S. 74: Allahabad HC dismisses Petition

The Allahabad High Court has dismissed a petition related to Input Tax Credit (ITC) claimed by a taxpayer from a non-existent firm. The court ruled that claiming ITC in such a manner clearly falls under the definition of tax evasion as per Section 74 of the Goods and Services Tax (GST) Act, which deals with cases involving fraud or willful misstatement. This judgment sends a strong message against fraudulent ITC claims and emphasizes the tax authorities' increased scrutiny over the legitimacy of input tax credits being availed by businesses, particularly when transactions involve entities that are not genuine or operational.