LatestIncome Tax 1 July 2026
GST Tax Credit
Under the current GST law, buyers may be required to pay for a supplier's default, which can lead to additional financial burdens. The reason for this is structural rather than procedural, as the Input Tax Credit was sold as a seamless offset of tax already paid down the chain, but the law as it now stands does not provide for this.
The GST law has a provision where a buyer may be required to pay for a supplier's default. This is because the Input Tax Credit (ITC) was designed to be a seamless offset of tax already paid down the chain. However, the law as it now stands does not provide for this, leading to additional financial burdens on buyers.
- The reason for this is structural rather than procedural.
- The ITC was sold as a way to avoid cascading taxes, but the current law does not achieve this goal.
The issue highlights the need for reform in the GST law to prevent buyers from being penalized for a supplier's default.
Need help understanding this update?
Connect with our domain experts instantly via WhatsApp for customized legal guidance.