GST Council may protect buyers from supplier tax default losses

The GST Council is considering a framework to shield genuine buyers from losing Input Tax Credit (ITC) when their suppliers default on tax payments. Under the proposal, recovery efforts would be directed at the defaulting suppliers rather than penalizing innocent purchasers.

The framework would maintain enforcement action against buyers who knowingly participate in fraudulent transactions. The move aims to balance revenue protection with fairness to legitimate businesses caught in supply-chain defaults.