Businesses could soon get major relief under the GST system.
The GST Council is expected to consider a proposal that would protect a buyer’s Input Tax Credit (ITC) even if the supplier fails to deposit GST with the government.
If approved, the change will reduce the financial burden on honest businesses that currently lose ITC because of a supplier’s default.
What Is the Proposed Rule?
Under the proposed amendment, a buyer’s ITC will be protected once the supplier’s GSTR-2B is generated and the buyer submits the required payment or banking documents.
At present, even if a business pays GST to the supplier, it can still lose its Input Tax Credit if the supplier does not deposit that tax with the government.
The proposed rule aims to ensure that genuine buyers are not penalized for mistakes or non-compliance by their suppliers.
Why Is This Important?
The new proposal is designed to reduce the financial risk for businesses that follow GST rules.
If the GST Council approves the amendment, compliant businesses will be able to claim their Input Tax Credit without worrying about whether the supplier has deposited the tax.
This could provide significant relief to companies that regularly face ITC-related disputes due to supplier defaults.
GST Collections Continue to Grow
India’s gross GST collection reached ₹1,94,812 crore in June 2026, registering a 13.9% year-on-year increase.
The growth was mainly driven by higher tax collections on imports.
According to government data:
GST from imports: ₹60,038 crore, up 34.6%
Domestic GST collection: ₹1,34,774 crore, up 6.5%
The total GST collection increased by ₹23,707 crore compared to ₹1,71,105 crore collected in June last year.
GSTAT Appeal Deadline Extended
The government has also extended the last date for filing appeals before the Goods and Services Tax Appellate Tribunal (GSTAT).
Taxpayers can now file appeals until July 31, 2026.
Earlier, the deadline was June 30, 2026.
The extension was granted after many taxpayers reported technical issues on the GSTAT portal due to a large number of appeal filings.
What Is GSTAT?
The Goods and Services Tax Appellate Tribunal (GSTAT) is a judicial body created under GST law to hear appeals against orders passed by GST authorities.
It provides taxpayers and tax officials with a platform to resolve GST-related disputes and appeals.
