FAM welcomes Supreme Court decision

The Federation of Associations of Maharashtra (FAM) has welcomed the Supreme Court's decision that arrears of GST cannot be recovered from buyers and traders. According to the rules of GST, if a trader sells goods to another trader by levying GST and he does not pay the amount of GST billed to the government, then the GST was being recovered from the purchasing traders. The law was opposed by the Federation of Associations of Maharashtra (FAM).

The GST department filed a petition in the Supreme Court against the High Court decision. However, the apex court has recovered GST and VAT from traders who honestly pay the tax. The decision was upheld, said Rajesh Shah, senior vice-president of FAM.