Answer

1. F

   Facts

   Basic checks on GSTIN status, filing history, premises and payment discipline stop most fake supplier risks. These also become your proof of good faith later.

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 37A, CGST Rules 2017If the supplier has not filed GSTR-3B for the period by 30 September after the year, the recipient reverses that ITC by 30 November; it is re-availed after the supplier files.
3. A

   Analysis

   Check GSTIN status and return filing on Search Taxpayer, verify the address and visit if the order is large, and see if the supplier was registered recently with large sales. Red flags include prices well below market, insistence on cash, unknown transporters and invoices without e-way bills. Rule 37A also makes you reverse credit if the supplier does not file GSTR-3B by 30 September after the year.

4. C

   Conclusion

   1. 1Verify GSTIN status, registration date and filing history.
   2. 2Collect KYC: PAN, address proof, bank letter.
   3. 3Check e-way bill and transport for each supply.
   4. 4Pay only by bank and track supplier filings monthly.
   5. 5Record the checks in a vendor file.

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