Answer

1. F

   Facts

   Under Sec 155, the buyer must prove ITC eligibility. Courts have said an invoice alone may not be enough. You should be able to show the goods actually moved, were received and were paid for.

2. P

   Provisions and law

   • Sec 155, CGST Act 2017The burden of proving eligibility for ITC lies on the person claiming it
   • 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 16(2)(b), CGST Act 2017ITC is allowed only if goods or services have actually been received
3. A

   Analysis

   A strong file includes the purchase order, tax invoice, e-way bill, lorry receipt or freight bill, weighbridge slip or goods receipt note, stock entry and bank payment proof. Example: a trader buying Rs 25 lakh of copper scrap keeps all six documents; if the supplier is later found fake, he can show a genuine purchase. Recent High Court rulings protect such bona fide buyers.

4. C

   Conclusion

   1. 1Create a folder per supplier and per purchase
   2. 2Collect PO, invoice, e-way bill and transport proof
   3. 3Record goods receipt and stock entry with date
   4. 4Attach bank payment proof
   5. 5Keep the supplier's portal check screenshot

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