Input Tax Credit (ITC) is one of the biggest advantages available under the Goods and Services Tax (GST) regime. It allows businesses to reduce their tax liability by claiming credit for the GST paid on purchases. However, one issue that has become increasingly common is ITC Reversal on Fraud Suppliers. Many genuine taxpayers receive GST notices because their suppliers are later found to be fake, non-compliant, or involved in fraudulent transactions.

The question every business owner asks is: Can a genuine buyer lose ITC because of the supplier's fraud?