Answer

1. F

   Facts

   This is a common ground under Sec 16(2)(c). Your defence is proof that the purchase was genuine, the supplier was active then, and you paid him through bank.

2. P

   Provisions and law

   • Sec 16(2)(c), CGST Act 2017ITC is allowed only if the tax charged has actually been paid to the Government by the supplier.
   • Sec 155, CGST Act 2017The person who claims ITC has the burden of proving that the claim is genuine.
   • Rule 142(1A), CGST Rules 2017Before a show cause notice, the officer may communicate the tax, interest and penalty ascertained in Part A of DRC-01A; the person may pay or give submissions in Part B.
3. A

   Analysis

   Reply with an invoice-wise evidence table and ask for the material relied on. If the supplier was cancelled retrospectively, show his status at the time of the invoice. If evidence is weak, compare the cost of paying now with the penalty later. See the fake ITC defence process for detail.

4. C

   Conclusion

   1. 1List the invoices from that supplier.
   2. 2Collect movement, receipt and payment proof.
   3. 3Ask for the material relied on.
   4. 4File Part B with evidence, or pay if the case is weak.

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