Answer

1. F

   Facts

   Rule 37 asks whether the supplier has been paid the value and tax. Payment by a related party on your behalf can count if it is documented as your payment.

2. P

   Provisions and law

   • Rule 37, CGST Rules 2017If the supplier is not paid within 180 days of the invoice, the proportionate ITC is shown as reversed in the GSTR-3B for the tax period immediately after the 180 days, with interest under Sec 50; it is re-availed once payment is made. Not applicable to reverse charge supplies, and to deemed supplies without consideration.
   • Sec 155, CGST Act 2017The person who claims ITC has the burden of proving that the claim is genuine.
3. A

   Analysis

   Keep a letter or agreement showing the payment was made for you, and record the inter-company entries in both books. The supplier's ledger should show your account settled. Without this, an officer may see the invoice as unpaid by you. Confidence in this treatment is medium.

4. C

   Conclusion

   1. 1Document the payment arrangement in writing.
   2. 2Pass entries in both companies' books.
   3. 3Get the supplier's ledger confirmation.
   4. 4Keep the bank proof.

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