GST Library

Login | Register

Best GST Library

Contact Us

Subscription Plans

GST News | Updates

GST Calendar

GST Diary

GST Case Laws

GST Notifications, Circulars, Releases etc.

Act & Rules

Act & Rules (Multi-view)

Act & Rules (E-book)

GST Rates

GST Rates (E-book)

HSN Classification

GST Council Meetings

GST Set-off Calculator

ITC Reversal Calculator

E-invoice Calculator

Inverted Duty Calculator

GSTR-3B Manual

GSTR-9 Manual

GSTR-9C Manual

GST Forms

Full Site Search

E-way Bill

Finance Bill 2024

GST Evasion in India

GST Videos


GST e-books

GST Domains Sale

About Us

Our Services

Contact Us

TaxReply India Pvt Ltd
®
Subscribe Free GST updates on...

Join on twitter

Join GST Group 120
Hindi
English

Tax Invoices and Cheque payment are not sufficient to claim ITC: SC Ruling

In a important ruling, Supreme Court has reversed the order of High Court in which HC allowed the taxpayer's ITC by relying on tax invoices and cheque payments as a material proof.

"A dealer claiming ITC has to prove beyond doubt the occurrence of the actual transaction and the actual physical movement of the goods." - SC Held

Though the said ruling is under VAT Regime, however the ruling may have significant impact in GST Regime also. GST authorities may now ask for additional documents to substantiate input tax claims by placing reliance on the principles laid down in the above ruling. However, apart from invoice and proof of payment, documents such as E-waybill and E-Invoice, could help in substantiating the genuineness of the  transaction under the GST regime.

The SC allowed tax authorities' appeal against the High Court order.

Supreme Court pronounced the order of HC as “erroneous” and said that, - “for claiming ITC, genuineness of the transaction and actual physical movement of the goods are the sine qua non and the aforesaid can be proved only by furnishing the name and address of the selling dealer, details of the vehicle which has delivered the goods, payment of freight charges, acknowledgement of taking delivery of goods, tax invoices and payment particulars etc.”

However, the SC added that while the tax invoice and cheque payment can be said to be proving one of the documents, it is not sufficient to prove the genuineness of the transaction. SC held tha.......
  Login to read more...


:

Input Tax Credit

:

Fake Invoices

:

Bogus ITC

Best-in-class
Digital GST Library
Plan starts from
₹ 3,960/-
(For 1 Year)
Checkout all Plans
Unlimited access for
365 Days
✓ Subscribe Now
Author:

TaxReply


Mar 16, 2023

Comments


Sir, what will be the implication of this judgement in GST?
By: Shivani Sharma | Dt: Mar 16, 2023


Post your comment here !

Login to Comment


GST News (Updates)


  Read more GST updates...

29
Mar
S
M
T
W
T
F
S
10 Mar

☑ Monthly | GSTR-7

GSTR-7 for the m/o Feb 2024 (For TDS Deductors u/s 51 - Section 39(3)).

☑ Monthly | GSTR-8

GSTR-8 for the m/o Feb 2024 [For TCS collection by E-Commerce Operators - Section 52(4)].

11 Mar

☑ Monthly | GSTR-1

GSTR-1 for the m/o Feb 2024 (Monthly Taxpayers) - N.No. 83/2020.

13 Mar

☑ Monthly | GSTR-5

GSTR-5 for the m/o Feb 2024 [Return by Non Resident Taxpayers - Rule 63 - Section 39(5)]

☑ Monthly | GSTR-6

GSTR-6 for the m/o Feb 2024 [For Input Service Distributors - Rule 65 & Section 39(4)].

☑ Monthly | IFF

IFF for the m/o Feb 2024 (QRMP Taxpayers, Optional) - Rule 59(2).

20 Mar

☑ Monthly | GSTR-3B

GSTR-3B for the m/o Feb 2024 (Monthly Taxpayer - Rule 61) - Either Compulsory taxpayer > 5 cr. or Voluntary taxpayer < 5 cr.

☑ Monthly | GSTR-5A

GSTR-5A for the m/o Feb 2024 [Return by OIDAR Service Providers - Rule 64.]

25 Mar

☑ Monthly | PMT-06

PMT-06 Monthly tax payment for Feb 2024 under QRMP Scheme [Rule 61(1)(ii) - Proviso to Section 39(7)].

Taxpayers have a choice to pay tax either, as per -  

A) Fixed Sum Method OR 
B) Self assessment basis subject to interest on short payment of taxes.
(Notification No.85/2020 - CT)
 
28 Mar

☑ Monthly | GSTR-11

GSTR-11 for the m/o Feb 2024 (Statement of inward supplies by persons having Unique Identification Number (UIN)).

31 Mar

☑ Annual | CMP-02

Last date to opt-in from regular scheme to composition scheme under GST for FY 2024-25 [Rule - 3 of CGST Rules.]

☑ Annual | GTA

Closing Date of window on GST Portal for Opt-in / Opt-out for Forward Charge / Reverse Charge by GTA for FY 2024-25 [Notification No.06/2023 - CT(R) dated 26.07.2023]