Reading Down Section 16(2)(c) of the CGST Act

J the app takes a look. Can a bona fide purchaser be denied Input Tax Credit for a supplier’s failure to remit GST despite having paid tax, received goods, and complied with every statutory requirement? In M/s Sahil Enterprises v. Union of India (Tripura High Court, 6 January 2026), the Court answers this question by reading down Section 16(2)(c) of the CGST Act, reaffirming that tax laws cannot compel the impossible or penalise innocence. This judgment is a significant step in restoring balance between revenue protection and constitutional fairness under GST.