Tax authorities cannot block input tax credit merely because a supplier faced bogus tags

The Goods and Services Tax Appellate Tribunal ruled that input tax credit cannot be rejected solely on the grounds that a supplier was previously classified as bogus. The tribunal emphasized that the buyer must be allowed to claim credit if they successfully establish the actual purchase, movement, and physical receipt of goods using verifiable supporting records.

This decision shields compliant buyers from losing tax benefits due to external allegations levied against their vendors. It reinforces that the onus rests on proving the authenticity of the transaction through documentation rather than relying exclusively on the supplier's contested registration status.

Taxpayers facing similar disputes should maintain rigorous records of goods transport, invoices, and payment trails to substantiate genuine commercial transactions. Practitioners and businesses must watch for further appellate consistency on vendor verification protocols in upcoming GST proceedings.