Supply of Invoice without goods

[Asked by Guest]

Issue: Assesse has purchased yarn through broker and recieved Invoice. Seller in the Invoice was the party from which broker purchased yarn and sold to assesse. Now the issue is there has been departmental raid in Seller's office. Seller denied the above sale, despite of fact that the bill was in his name. The said broker fled away. Because of this Gst officer are pressurizing the assesse that this is case of bogus invoice u/s 122. But assesse has genuinely purchased those goods through broker. The only proof we have is Invoice and payment made to seller through bank. No E-way bill was active at that time. And assesse does not maintain any goods recieved note. Please guide us.

AI Summary

Burden of Proof for Input Tax Credit: substantiate purchases with supplier returns, GSTR 2A, bank proof and transport docs.
Assessee received goods through a broker and retains invoice and bank payment proof, but supplier denies the sale after a raid and broker absconded. To substantiate input tax credit, procure supplier GSTR 1 and GSTR 3B and confirm matches in your GSTR 2A, produce transport consignment notes or delivery proofs, and collate supplier ledger entries, bank payment evidence and lorry receipts. The burden to prove entitlement to credit rests on the claimant under Section 155 principles; lack of corroboration may prompt a show cause notice and litigation.