Bona Fide Recipient’s ITC cannot be denied Solely on Supplier’s Retrospective GST Cancellation”

This ruling underscores that ITC eligibility must be tested on the genuineness of the underlying transaction, not on the supplier’s subsequent, unrelated default. A retrospective cancellation of registration cannot retroactively taint a purchase that was valid when made. Recipients should proactively maintain robust documentary trails—invoices, e-way bills, transport records and payment proof—while adjudicating authorities must engage with such evidence before disallowing credit. ITC denial remains a serious consequence and should not be used as a mechanical response to a supplier’s later non-compliance.