The article explains that under current GST scrutiny, the eligibility of Input Tax Credit (ITC) hinges on a consistent documentation trail rather than just invoices. Chartered accountant Nitin Kaushik outlines the types of records—purchase orders, GST invoices with e‑way bills, GRNs, bank statements, and GSTR filings—that authorities examine. He stresses that due diligence and alignment of all records can protect bona fide buyers from penalties.
ITC eligibility now hinges on a consistent documentation trail that collectively tells a coherent story of intent, movement of goods, financial settlement, and statutory reporting.
Authorities frequently issue notices under Sections 74 and 74A of the GST framework, focusing on the authenticity of transactions.
Expected documents include purchase orders, quotations, GST invoices with e‑way bills, goods receipt notes, bank payment proofs, GSTR‑1/3B disclosures, GSTR‑2B reconciliation, and matching ledger entries.
No, the law does not intend to penalise bona fide buyers who can show due diligence—receipt of goods, payment, and compliance checks—even if a supplier later defaults.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
DevDiscourse · 7 days ago
The Internet and Mobile Association of India (IAMAI) has urged the Indian government to reassess the 5% GST applied to ride‑hailing services, arguing it harms driver income and consumer affordability. IAMAI calls for exemptions for SaaS‑based mobility services and highlights confusion from contradictory state rulings. The association seeks dialogue with the GST Council and Finance Ministry to create a more sustainable framework for the sector.
Whalesbook · 7 days ago
India’s GST law imposes a 5% tax on ride‑hailing services, but the SaaS model used by aggregators creates ambiguity under Section 9(5) of the CGST Act. IAMAI has urged a review of the tax’s applicability, while Karnataka has exempted subscription‑based platforms such as Namma Yatri. The dispute raises uncertainty for aggregators, potentially leading to unexpected liabilities and affecting driver earnings and consumer affordability.
A2Z Taxcorp · 10 days ago
India's GST Council has granted an exemption on individual life and health insurance premiums, removing the 18% GST. The decision, announced in a written reply on 5 February 2026, covers all individual policies including family floater plans. IRDAI confirmed that insurers have passed the benefit to policyholders without raising premiums.
A2Z Taxcorp · 15 days ago
Experts at a CESS seminar in Hyderabad called for a balanced approach to India’s GST 2.0 rollout, emphasizing the need to simplify compliance while protecting revenue. They highlighted a proposed two‑slab rate structure of 5% and 18%, reforms to address inverted duty structures in textiles and fertilizers, and concerns over misuse of the three‑day registration approval window. The Trust‑First philosophy notes that 95% of taxpayers operate without intrusive scrutiny.
The Hindu · 17 days ago
Experts and tax officials at an ICSSR‑sponsored seminar in Hyderabad called for a balanced approach to India’s upcoming GST 2.0 rollout, highlighting the need to simplify rates while protecting revenue. They warned against the misuse of the three‑day registration approval window and the inverted duty structure in sectors such as textiles and fertilizers.
LinkedIn · 19 days ago
The Bombay High Court ruled that a minimum three‑month gap must exist between a Section 73(2) show‑cause notice and the final order under Section 73(10) in GST proceedings. Orders passed earlier, such as the two‑and‑a‑half‑month order in the A.M. Marketplaces case, were quashed. The decision underscores procedural fairness and the need for adequate time for taxpayers to respond.
