A Division Bench of the Andhra Pradesh High Court dismissed an application from Bharti Airtel, seeking a stay on the implementation of Sec. 16(2)(C) of the Central GST Act (CGST) Act and APGST Act.
Section. 16(2)(C) provides that input tax credit (ITC) must be allowed to the recipient only when the supplier had discharged the output liability through utilisation of the ITC admissible in respect of the supply or by cash.
Bharti had challenged the validity of the section 16(2)(C) saying it cannot be deprived of ITC for a fault of the suppliers who had not remitted the tax collected.