ITC denial under Rule 37A Vexating Issues of GST 1 of 25

Rule 37A of the CGST Rules makes a recipient's input tax credit depend on whether the supplier actually paid the tax. So a buyer with a valid invoice, who received the goods and paid the GST, can still be denied credit because the supplier never remitted it.

This note asks whether safeguarding revenue is reason enough to load a supplier's default onto a compliant buyer.