Answer

1. F

   Facts

   Your defence is proof that the goods actually reached you and that you paid the supplier through the bank. The burden of proving the ITC claim is on you.

2. P

   Provisions and law

   • Rule 86A(1), CGST Rules 2017Commissioner or authorised officer, not below Assistant Commissioner, may disallow debit of ITC for recorded reasons where the supplier or recipient is non-existent, goods were not received, tax was not paid or there is no valid document
   • Sec 16(2), CGST Act 2017ITC needs a tax invoice, receipt of goods or services, tax actually paid by the supplier and the recipient's return
   • Sec 155, CGST Act 2017The person claiming ITC carries the burden of proving the claim
3. A

   Analysis

   Rule 86A(1) allows a block where the supplier is found non-existent. Sec 155 puts the burden on you, so collect proof of movement and payment. Example: for purchases of ₹12 lakh plus ₹2.16 lakh GST, show e-way bills, transporter bills, weighbridge slips, goods inward register, bank payments and your sales of those goods. Also show the KYC you did on the supplier at the time.

4. C

   Conclusion

   1. 1Pull every invoice from that supplier.
   2. 2Match each to e-way bill, transport, receipt and payment.
   3. 3Show how the goods were used or sold.
   4. 4Attach supplier KYC and GSTIN status at the time of purchase.
   5. 5File the representation asking for release.

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