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Mervyn Vivek   16 February 2024

Pure economic loss claim

Supplier didn't pay the GST for the goods sold to the buyer. So buyer could not claim input tax credit , as a result the buyer  paid the GST to the tax department. It has been more than one year .  Now, Can pure economic loss be claimed for recovery of payment from the supplier by the buyer ?



Learning

 4 Replies

T. Kalaiselvan, Advocate (Advocate)     17 February 2024

If the buyer suffered the loss due to the fault of the supplier then the buyer can issue a legal notice to the supplier demanding the compensation for the loss suffered by the buyer. 

If the supplier is not responding or not complying with the demands made,  then the buyer can file a suit for recovery of the damages suffered by the buyer against the supplier. 

Dr. J C Vashista (Advocate )     17 February 2024

File a suit for recovery of the amount paid by you on account of GST.

Mervyn Vivek   17 February 2024

I agree with replies. Can the suit for recovery of that GST amount be made on sec 69 of the indian Contract Act?

T. Kalaiselvan, Advocate (Advocate)     17 February 2024

You can discuss with a local lawyer and file the suit as per proper provisions of law.


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