Answer

1. F

   Facts

   Under Sec 155 the buyer must prove the claim. Strong proof links each invoice to physical movement, receipt and payment.

2. P

   Provisions and law

   • Sec 155, CGST Act 2017The person who claims ITC has the burden of proving that the claim is genuine.
   • Sec 16(2), CGST Act 2017ITC is allowed only with a tax invoice, receipt of goods or services, tax actually paid to the Government by the supplier, and the recipient's own return filed.
3. A

   Analysis

   The best file has the purchase order, tax invoice, e-way bill, lorry receipt or freight bill, toll or GPS data if available, gate entry, goods receipt note, stock register entry, quality check record and bank payment. Add proof that the goods were used or sold, such as production records or your sale invoices. Courts look at the whole chain, not one paper. A business that keeps this file for every new supplier is rarely caught off guard.

4. C

   Conclusion

   1. 1Create a purchase file for every supplier invoice.
   2. 2Include transport, receipt and stock entries, not just the invoice.
   3. 3Pay only through bank and keep statements.
   4. 4Record how the goods were used or sold.
   5. 5Store files so they can be pulled up years later.

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