Purchaser may be Denied GST ITC if Supplier Fails to Remit Tax: Madras HC suggests Offset Printer to avail Appellate Remedy

The Madras High Court has observed that a purchaser of goods may be denied Input Tax Credit (ITC) if their supplier fails to remit the collected GST to the government. The court was hearing a case involving an offset printer who was denied ITC because their supplier had not paid the tax. While acknowledging the hardship faced by the genuine buyer, the court noted that the law places the responsibility on the assessee to ensure the compliance of their suppliers. The High Court suggested that the petitioner, instead of filing a writ petition, should avail the appellate remedy available under the GST Act. This allows for a more detailed factual verification of the case. The court's observation highlights the contentious issue of ITC claims and the "matching" provisions in the GST law, which can penalize a buyer for the fault of a seller.