A recent Kerala High Court ruling might bring some relief to scores of Indian companies stuck in litigation over rejected input tax credit (ITC) claims under GST after their suppliers failed to pay taxes, experts said.
In a case filed by Galaxy Traders, the Kerala High Court held that disallowing credit based solely on the absence of entries in the GSTR-2A form is not warranted. GSTR-2A is a system-generated statement of inward supplies that automatically reconciles the purchases of a company with the outward supplies mentioned in the GSTR-1 filing of the supplier.
Source a2ztaxcorp
