Goods Supplied Under Fraudulent Order Without Payment: AAR Rules GST Still Applicable on Issued Invoices

The Authority for Advance Ruling (AAR) ruled that GST is applicable on invoices issued for goods supplied under a fraudulent order, even if no payment was received. The AAR reasoned that the supply had indeed taken place based on the invoices issued, and the fraudulent nature of the order does not negate the tax liability on the transaction. The recipient of the goods might have recourse through legal means to address the fraudulent procurement, but the GST implications for the supplier remain. This ruling emphasizes the transactional nature of GST and the taxability of supplies based on the issuance of invoices, irrespective of payment realization or the underlying legality of the purchase order.