IS IT MANDATORY TO HAVE E WAY BILL TO CLAIM ITC

[FARIDUDDIN AHMAD]

received intimation u/s 61 stating that the tax payer in june 2021 fraudulently availed ITC without receipt of goods. reason cited is that e way bill has not been generated by the supplier. however the facts are goods is received by the tax payer and invoices are reflected in GSTR 2A. payment has aslo been paid against the purchase invoices. is it e way bill mandatory to claim ITC.

AI Summary

Taxpayer Must Prove Receipt of Goods for ITC Without E-Way Bill; Suspicion Alone Can't Deny Claims. A taxpayer received a notice for allegedly availing Input Tax Credit (ITC) fraudulently without generating an e-way bill, despite receiving goods and having invoices reflected in GSTR 2A. Experts in the discussion clarify that while an e-way bill is not mandatory for claiming ITC, the taxpayer must prove receipt of goods through other evidence like transportation receipts or CCTV footage. Legal precedents indicate that suspicion alone cannot deny ITC; the burden of proof lies with the taxpayer to demonstrate genuine transactions. Courts have ruled that ITC claims should not be rejected without substantial evidence of fraud.