SECTION 79 COVERED TO SECTION 75(12) CGST ACT, 2017

Section 79 of the CGST Act, 2017 dealt with the recovery of input tax credit (ITC) in case of non-payment by the supplier.

The section stated that if the supplier did not pay the tax to the government, the recipient of the goods or services would not be able to claim ITC.

However, this section was challenged in various courts and was deemed unconstitutional.

To address this issue, the government made changes to the section and covered it under Section 75(12) of the CGST Act, 2017.

Under the new section, the recipient of the goods or services can claim ITC even if the supplier has not paid the tax to the government.

However, the recipient will have to pay the tax along with interest if the supplier does not pay the tax within 180 days.

This change has been welcomed by businesses as it ensures that they are not penalized for the non-payment of tax by their suppliers.