In L&T Geostructure LLP v. Union of India, the Madras High Court upheld Rule 36(4) of the CGST Rules, linking ITC claims strictly to GSTR-2A data (supplier compliance).
Key Takeaways:
- Rule 36(4) restricts ITC to invoices uploaded by suppliers in GSTR-1 (reflected in GSTR-2A).
- Petitioner argued it violates Section 16 and taxpayer rights. The Court disagreed.
Court’s Stand:
- The Rule is valid under Section 16(1).
- It serves a legitimate goal—curbing fraud and fake invoices.
- ITC is a conditional entitlement, not an absolute right.
Implications:
- Buyers must ensure vendor compliance to secure ITC.
- Strengthens the government’s position in mismatch-based ITC denials.
- Marks a judicial tilt toward system-led GST accountability.
Article link: https://test.taxindiaonline.com/news/guest_column/details?id=51378
PDF attached for convenience.
Your thoughts and feedback are welcome!
(The author is a practicing advocate, Co-Founder and Legal Head of RB LawCorp.
He specializes in GST law. Suggestions or queries can be directed to
ashsharma@rblawcorp.in. The views expressed in this article are strictly
personal.)
