The Economic Times

GST law panel clears proposal to shield buyers' input tax credit from supplier defaults

A GST Council proposal will protect buyers from losing input tax credit. This protection applies if suppliers fail to deposit taxes with the government. Buyers' credit will be safe if invoices are reported and payments are made through banking channels. Tax authorities will pursue defaulting suppliers for recovery instead of penalizing purchasers. This significant shift addresses a long-standing industry demand and is expected soon.