The Hon’ble Supreme Court in Bhandari Scrap Traders v. Union of India & Ors. [SLP (C) No. 23931 of 2026 dated July 24, 2026] dismissed the Special Leave Petitions filed relying on the judgment of the Hon’ble Gujarat High Court in Maruti Enterprise v. Union of India & Ors. [R/Special Civil Application No. 18080 of 2023 and allied matters including R/Special Civil Application No. 749 of 2025 dated May 01, 2026], thereby affirming that Section 16(2)(c) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) is neither unconstitutional nor liable to be read down, and holding that Input Tax Credit (“ITC”) is not available to the recipient unless the tax charged in respect of the supply has actually been paid to the Government by the supplier.
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