audit documents

[SURESH GUPTHA]

During Audit by the state GST department is compelling to produce the original Bills, they are not agreeing for xerox bills. In this context i would like to bring to notice that supplier has uploaded their invoices in GSTR-1 and it is reflecting in our GSTR 2A.

[Amit Agrawal]

As per Section 16(2)(a), tax-payer should be in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed, before taking ITC.

In view of above, I am not sure I have understood your query. Can you please elaborate?

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Amit Agrawal]

Though not directly related to situation you are in, you may quote para 36 of circular No. 125/44/2019-GST dated 18.11.2019 where even refund was allowed against 'invoices' which are not appearing in tax-payer's Form GSTR-2A when copies of such invoices were uploaded / submitted.

And, one need NOT even submit copies of invoices which are appearing in Form GSTR-2A for getting refund. As per said circular, the proper officer shall rely upon FORM GSTR-2A as an evidence of the accountal of the supply by the corresponding supplier(s) in relation to which the input tax credit has been availed by the applicant. Moreover, in said circular, it was emphasized that the proper officer shall not insist on the submission of an invoice (either original or duplicate) the details of which are available in FORM GSTR-2A of the relevant period uploaded by the applicant.

Using this logic, you should try & convince audit-officers that in your situation, they should accept photocopies of invoices presented by you for audit (which are anyway getting reflected in Form GSTR-2A).

If required, kindly tell them that you are wiling to self-certify these photocopies and wherever they have any doubt, you are ready to present even original copy of invoice.

This, I hope, will help you to avoid showing each & every in original (Here, I am presuming that you are having operational difficulties to present original invoice copies, but you have ALL invoices in original with you against which you had taken ITC).

P.S. One needs to try & see if there are any Dept's instructions / audit manual for its audit-officer/s in this regard.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[KASTURI SETHI]

Note No.2 of Model All India GST Audit Manual, 2023 (page no.104) reads as under :-

"The above list is illustrative. It is recommended that GST Administrations are to ensure to identify documents/records/filings already available in the system and not to ask for the same from the tax payers."

As per Note No.1 only the documents and statements as specified in the letter annexed with ADT-01 are to be produced.

[KASTURI SETHI]

Whatever I have expressed above is based on 'model' Audit Manual. It is a model only. In my personal view, a tax invoice is very much basis and foundation of availing ITC under Section 16 of CGST Act.. An assessee's books of accounts must synchronize with the data uploaded in the Common Portal System enforced under Section 146 of CGST Act.

The Central Tax Officers have vast powers under Section 168 of CGST Act. An assessee cannot refuse to produce original invoices to the Audit Team, especially, if the Audit Officer has any doubt.

Disclaimer : These are my personal views for academic purposes and NOT meant for any court proceedings.

[KASTURI SETHI]

The Common Portal System needs human intervention. It cannot be denied. To error is human. Otherwise also, the department can ask for any information or document to safeguard the interest of revenue.

Regarding the powers of Central Tax Officer (Proper Officer), it is worthwhile to mention that Section 70 of the CGST Act should be read word for word along with its meaning inherent therein. Emphasis is laid on the words, 'any person', 'a document' 'any other thing'.

Also see the definition of 'Proper Officer' provided under Section 2 (91) of CGST Act. The Audit Officers are assigned the work of audit by the Commissioner.

The Auditee should not forget to peruse Sections 71, 72 & 73 of the CGST Act in his or her own interest.

One must not jump to a conclusion.

Disclaimer :These are my personal views for education purposes only and not meant for any court proceedings.

AI Summary

Input tax credit documentation: acceptance of vendor uploaded invoices may permit photocopies, but officers can demand originals.
The taxpayer argues that supplier invoices reflected in Form GSTR 2A should be accepted during GST audit and that photocopies with self certification may suffice, relying on Circular No.125/44/2019 which treats GSTR 2A as evidence and advises officers not to insist on invoices already available in GSTR 2A; the Audit Manual similarly recommends not requesting documents available in the system. However, audit officers retain statutory powers to require originals where there is doubt, so taxpayers should reconcile portal data with books and be prepared to produce originals if challenged.