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.
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A2Z Taxcorp · 9 days ago
The article explains that while GST was designed to eliminate cascading tax and enable seamless input tax credit (ITC), the reality has become a compliance-driven process. ITC eligibility now hinges on invoice matching, GSTR‑2B reconciliation, Rule 36(4), Section 16(2)(aa) restrictions, and the Invoice Management System (IMS), making credit availability conditional on supplier filings and compliance data. Businesses face working‑capital pressure and litigation due to delayed or denied ITC.
GSTZen · 11 days ago
The article explains that for services, GST becomes payable immediately upon receipt of an advance, while for goods, advance receipts are exempt under Notification No. 66/2017-Central Tax and GST is due only when goods are supplied. It also details the required receipt and refund vouchers and how to calculate GST on inclusive and exclusive advances.
Economic Times · about 2 months ago
The Supreme Court has upheld a 28% GST on online gaming, applying it retrospectively to curb unregulated wagering. The ruling targets real‑money games and aims to aid investigations into money laundering. The decision marks a significant shift in India's approach to digital gambling.
Economic Times · about 2 months ago
The Supreme Court dismissed Uttar Pradesh’s attempt to levy a 21% state VAT on natural gas transported from Andhra Pradesh to Uttar Pradesh, ruling the transaction is an interstate sale governed by the Central Sales Tax Act. The decision upheld a 2012 Allahabad High Court judgment that quashed UP’s assessment orders against Reliance Industries, Tata Chemicals and IFFCO. The ruling confirms that gas transported through common pipelines remains an interstate sale even when co‑mingled.
Aviation Jeta · about 2 months ago
The Delhi government has lowered the VAT on Aviation Turbine Fuel (ATF) from 25% to 7% for airlines operating in the capital. The reduced rate will apply for an initial six‑month period, providing relief to airlines and passengers amid rising fuel costs.
Republic World · about 2 months ago
The Delhi government has reduced the VAT on aviation turbine fuel (ATF) from 25% to 7% effective 16 May 2026. The change applies to airlines purchasing fuel at Delhi airports, providing significant cost savings for the aviation sector.
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Key Takeaways
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.
Primary source
Read the full article at BusinessTodayThis summary was published on VATfaqs.com on 15 February 2026. It relates to VAT developments in India. The original source is BusinessToday.
