What's the Penalty?
A buyer-protection ruling your client can't rely on just yet
Your client's supplier collected GST, disclosed it in GSTR-1, but never deposited it — filing 'Nil' GSTR-3B instead. The department now wants to reverse your client's entire ITC under Section 16(2)(c), with no allegation of collusion. Your client has heard of a High Court ruling protecting honest buyers in exactly this situation.