05/09/2026
Your ITC was denied because your supplier didn’t file GSTR-1? This judgment is important for you.**
Under Section 16(2)(aa) of the CGST Act, one of the conditions for claiming Input Tax Credit (ITC) is linked to the supplier furnishing the invoice details and the invoice reflecting in the recipient’s GSTR-2B.
But what happens when you have:
✅ Made a genuine purchase
✅ Received a valid tax invoice
✅ Made the payment through proper banking channels
✅ Completed a genuine business transaction
…and the issue is simply that your supplier failed to report the invoice correctly?
Should a genuine buyer lose ITC because of the supplier’s default?
⚖️ The Gauhati High Court has examined this issue and raised important concerns about applying Section 16(2)(aa) strictly against genuine and bona fide purchasers.
The judgment highlights the importance of verifying the genuineness of the transaction, supporting documents, and payment rather than looking at the GSTR-2B mismatch in isolation.
So, if you receive a GST notice stating “GSTR-2B mismatch” or "ITC reversed/denied,” don’t ignore it. Discuss the facts of your case with your **CA or GST professional and understand the legal position before responding.
Save this Reel for your next GST audit or notice.
📤 Share it with your CA, accountant, or fellow business owner.
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