GST ITC claimed from Cancelled Dealers, Return defaulters and Non-tax payers: Madras HC grants Hearing on 10% Pre-Deposit

The Madras High Court has granted a hearing in a case involving GST input tax credit (ITC) claims from canceled dealers, return defaulters, and non-taxpayers. The case pertains to situations where businesses have claimed ITC on purchases from entities that later defaulted on their GST returns or had their registrations canceled. The taxpayer was asked to make a pre-deposit of 10% of the disputed amount. The court’s ruling underscores the necessity of addressing such claims and ensuring due process is followed before penalties or tax recovery actions are enforced.