Chandigarh, Oct. 3 -- The Punjab and Haryana High Court has ruled that a buyer's Input Tax Credit (ITC) cannot be mechanically reversed merely because a supplier has failed to deposit GST with the government or because the supplier's GST registration was subsequently cancelled.

Judgment Covers 424 Writ Petitions

A Division Bench of Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor delivered the judgment on October 1, 2026, disposing of 424 writ petitions, including Shaurya Alloys Pvt. Ltd. v. State of Punjab and Another (CWP-34296-2024).

The cases involved purchasers who paid GST to suppliers and claimed ITC, but later faced denial or reversal after suppliers failed to deposit the tax or had their GST registrations cancelled....