LatestGoods & Service Tax (GST) 27 October 2026
GSTAT Rejects Section 74 ITC Demand
The Goods and Services Tax Appellate Tribunal (GSTAT) has nullified a Section 74 demand, concluding that merely claiming ineligible input tax credit (ITC) does not constitute suppression of tax. The decision clarifies that eligibility checks alone cannot trigger punitive demands, providing relief to taxpayers who inadvertently accessed disallowed ITC and setting a precedent for future GST disputes.
The Goods and Services Tax Appellate Tribunal (GSTAT) has set aside a Section 74 demand, stating that the simple availing of ineligible input tax credit (ITC) is not a case of tax suppression.
- The tribunal emphasized that suppression implies intentional concealment, which was not proven.
- Taxpayers who claimed ITC without meeting eligibility can now seek relief without facing punitive demand notices.
- This ruling may influence future GST litigation by narrowing the scope of Section 74 applicability.
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