Businesses could soon receive 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 the collected GST with the government.
If approved, the change could prevent compliant businesses from losing tax credits because of a supplier’s mistake or non-compliance.
What Is the Proposed Change?
Under the proposal, a buyer’s ITC would remain protected once the supplier’s GSTR-2B is generated and the buyer submits the required payment or banking documents.
At present, businesses can lose their ITC even after paying the GST amount to the supplier if that supplier does not deposit the tax with the government.
The proposed amendment aims to ensure that genuine buyers are not penalized for actions beyond their control.
Why Is This Important?
Many businesses have raised concerns about losing ITC despite following all the rules and making timely payments.
If the GST Council approves the proposal, compliant taxpayers will face lower financial risk, while the responsibility for tax compliance will remain with the supplier.
This could provide significant relief to businesses operating within the formal economy.
GST Collection Nears ₹2 Lakh Crore
India’s gross GST collection for June 2026 reached ₹1,94,812 crore, an increase of 13.9% compared to the same month last year.
The rise was mainly driven by higher tax collections from imports.
Total GST Collection: ₹1,94,812 crore
Domestic GST Collection: ₹1,34,774 crore (up 6.5%)
Import GST Collection: ₹60,038 crore (up 34.6%)
The figures show that strong import-related tax collections played a major role in boosting overall GST revenue.
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.
The deadline was extended after many users reported technical issues on the GSTAT portal due to a heavy rush of applications.
However, the government has advised taxpayers not to wait until the last date and to complete the filing process as early as possible.
What Is GSTAT?
The Goods and Services Tax Appellate Tribunal (GSTAT) is a legal body established under the GST law.
It hears appeals filed by taxpayers against orders passed by GST authorities.
The tribunal helps resolve GST-related disputes and provides a legal platform for both taxpayers and tax officials to settle tax matters.
