⚖️ Can ITC Be Denied for Address Errors on Invoices?
In a landmark judgment, the Delhi High Court has ruled in favor of the taxpayer in the case of B Braun Medical India (P.) Ltd. v. Union of India [W.P.(C) 114/2025, dated March 12, 2025], stating that Input Tax Credit (ITC) cannot be denied solely due to incorrect GSTIN or address on invoices if the buyer’s identity is clear and the transaction is genuine.
🧵 Case Summary: A Minor Error, Major Impact
✅ Parties Involved:
- Petitioner: B Braun Medical India (P.) Ltd.
- Supplier: Ahlcon Parenterals (India) Limited
📌 Issue:
Ahlcon inadvertently mentioned the Bombay GSTIN and address of the buyer instead of the Delhi GSTIN, even though:
- The company name was correct.
- The products were delivered as per valid purchase orders.
- The invoices were uploaded in GSTR-1, and no other entity claimed ITC on the same invoices.
Despite this, the department denied ITC and raised a demand order dated June 28, 2024 under the CGST Act.
✅ Practical Takeaways for Businesses
| Action | Description |
|---|---|
| 📋 Check Invoices | Ensure correct name, GSTIN, and delivery address. Verify before claiming ITC. |
| 💻 Reconcile GSTR-2A | Always match with supplier filings in GSTR-1. |
| 📌 Document Everything | Maintain POs, delivery challans, emails, and correspondence. |
| 🧾 Challenge Unjust Orders | Use writ petitions in High Court for disputes involving genuine errors. |
| 🔄 Train Suppliers | Ensure your vendors follow best billing practices. |
📢 Final Word: Focus on Intent, Not Error
This case confirms that minor errors by suppliers should not lead to harsh tax consequences for compliant buyers. If your ITC claim is genuine and properly documented, procedural lapses should not block your rights under GST law.