Answer

1. F

   Facts

   Keep the invoice, proof of goods movement and receipt, and bank proof of payment for each purchase. Store them for at least the record-keeping period.

2. P

   Provisions and law

   • Sec 16(2), CGST Act 2017Conditions for ITC: invoice, receipt, tax paid by supplier, return filed
   • Sec 35, CGST Act 2017Books and records to be kept at the principal place of business
   • Sec 36, CGST Act 2017Records to be retained for 72 months from the annual return due date
3. A

   Analysis

   Sec 16(2) conditions are easier to prove with documents made at the time. Sec 36 asks you to keep records for 72 months after the annual return due date. Example: for each truckload, keep the purchase order, invoice, e-way bill, lorry receipt, goods receipt note, stock entry and bank payment. A tidy file can turn a Rule 86A block into a quick release.

4. C

   Conclusion

   1. 1Make a standard purchase checklist for staff.
   2. 2Scan and file documents by supplier and month.
   3. 3Match invoices with GSTR-2B monthly.
   4. 4Pay suppliers only by bank.
   5. 5Keep records for 72 months after the annual return due date.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.