‪@Zoho_Books‬ Webinar on SC’s Landmark Judgement on Sec 16(2)(c) of CGST Act and it’s applicability

In this detailed webinar, Adv. (CA) Bimal Jain, GST Expert, analyses the Supreme Court’s landmark ruling concerning Section 16(2)(c) of the CGST Act, with special reference to the Bhandari Scrap Traders matter and the Gujarat High Court’s decision in Maruti Enterprises. The session examines not only the constitutional validity of Section 16(2)(c), but also its practical impact on bona fide recipients who have valid tax invoices, proof of receipt of goods/services, banking-channel payments and other supporting documents, yet face ITC disputes because of defaults at the supplier level or further down the supply chain. A key issue discussed is whether the law can place the burden on a genuine purchaser when there is no effective mechanism available to verify, at the individual invoice level, whether the supplier has actually deposited the corresponding GST. 🎤 Speaker: Adv. (CA) Bimal Jain, GST Expert 🎙️ Moderator: Harsh Agarwal 📌 KEY ISSUES DISCUSSED with⏱️TIMESTAMPS 00:00 – Introduction & Webinar Overview 01:26 – Introduction of Adv. (CA) Bimal Jain 03:25 – Supreme Court Ruling on Section 16(2)(c) – Background 05:02 – Can an Honest Buyer Lose ITC Due to Supplier Default? 06:03 – Conditions for Availing ITC under Section 16(2) 07:18 – Bhandari Scrap Traders & Judicial Background 08:42 – Constitutional Validity of Section 16(2)(c) 09:01 – Impact on Genuine Buyers: ITC, Interest & Penalty 10:23 – Major Grievances of Genuine Recipients 11:04 – GSTR-2A and the Problem of Verifying Supplier Tax Payment 12:44 – Built-in Mechanism under GST Law 13:01 – Section 41(2) Read with Rule 37A Explained 14:01 – ITC Reversal & Re-availment Where Supplier Defaults 15:06 – Rule 37A and Supplier’s GSTR-3B Compliance 16:29 – Prospective Applicability of Section 41(2) & Rule 37A 17:06 – Can the New Reversal Mechanism Apply to Past Periods? 19:04 – Recovery Action Against Defaulting Suppliers 20:35 – Why Should the Department Proceed Against the Supplier? 20:50 – Doctrine of Impossibility under GST 23:02 – Two Situations for a Recipient / Genuine Buyer 24:44 – Genuine Buyer Having Complete Documentation 26:03 – L1 Supplier Compliant but L2/L3 Supplier Defaults 27:42 – Can ITC Be Denied for L2/L3 Defaults? 28:06 – No Mechanism to Check Beyond the Immediate Supplier 30:03 – Important Observations of Gujarat High Court 30:38 – Department’s Powers to Recover Tax from Defaulting Supplier 32:05 – When Can ITC Be Denied to the Recipient? 32:19 – “Knew or Ought to Have Known” Test 33:04 – Genuine Buyer vs Buyer Aware of Supplier Default 35:04 – Need for Legislative Amendment / Clarification 35:56 – Documents Supporting a Genuine ITC Claim 36:44 – Need for Technology-Driven Invoice-Level Verification 37:18 – Recovery from Defaulting Supplier vs Burden on Buyer 39:24 – Protection of Genuine Purchasers 41:23 – Key Impact of Bhandari Scrap Traders 42:11 – Is There a Real Protection Mechanism for Buyers Today? 42:27 – Invoice Management System (IMS) Explained 43:01 – Accept, Reject, Pending & No Action under IMS 43:15 – Flow from IMS to GSTR-2B and GSTR-3B 43:44 – Importance of Locking GSTR-3B Liability 45:00 – Can Invoice-Level GST Payment Be Verified Today? 45:57 – Possible Mechanism for Past & Future Periods 47:13 – Two Practical Situations for ITC Defence 48:19 – Is Bhandari Scrap Traders a Ratio or Dicta? 48:52 – Conclusion & Key Defence for Genuine Buyers 49:03 – Supplier Registration Cancelled Retrospectively – Impact on ITC 49:49 – Importance of Invoice, Delivery & Payment Evidence 50:41 – If Sale Is Genuine, Can Purchase Be Disputed? 56:02 – GSTR-3B Locking & Need for System Discipline 57:24 – Way Forward for Section 16(2)(c) 58:03 – Re-availment of ITC After Recovery from Supplier 59:01 – Need for a Supporting GST Mechanism 59:48 – Q&A Session Begins 1:06:56 – Q&A: Effect of Supreme Court Dismissal of SLP 1:08:03 – Q&A: Supplier Registration Cancelled Retrospectively 1:09:32 – Q&A: Protection Available to Genuine Buyers 1:11:23 – Q&A: L2/L3 Supplier Default & Bogus ITC Allegation 1:12:22 – Q&A: GSTR-1/2A/2B Available but Supplier Did Not File GSTR-3B This session is highly relevant for Chartered Accountants, Advocates, GST Practitioners, Tax Consultants, CFOs, Finance Professionals, Accountants, Business Owners and taxpayers dealing with ITC disputes and GST litigation. 📩 For GST-related queries: info@a2ztaxcorp.com ⚠️ Disclaimer: This video/webinar is intended solely for educational and informational purposes. The discussion represents the views and interpretation of the speaker based on the applicable legal provisions and judicial developments discussed during the session. It should not be treated as legal or professional advice. Please obtain appropriate professional advice based on the facts and circumstances of your case before taking any action. #GST #Section16 #Section16_2_c #InputTaxCredit #ITC #SupremeCourt #GSTR2A #GSTR2B #GSTR3B #Rule37A #Section41 #IMS #InvoiceManagementSystem #GSTLitigation #GSTLaw #BimalJain