ITC Denied Without Reasoning for One Supplier: Calcutta HC Stays GST Demand Until December 2025

The Calcutta High Court has provided interim relief to a taxpayer by staying a GST demand until December 2025. The demand was stayed because the court found that the Input Tax Credit (ITC) was denied for one particular supplier without any proper reasoning provided in the order. The tax officer had passed an order confirming a GST demand after disallowing a portion of the ITC claimed by the petitioner. The High Court, upon a preliminary review, noted that the order lacked a clear and reasoned explanation for the disallowance related to one specific supplier. Due to this lack of reasoning, the court granted a stay on the recovery of the disputed demand, providing the taxpayer with temporary protection from any coercive action. The matter will be heard in detail later to decide on the merits of the ITC denial.