Answer

1. F

   Facts

   Paying a third party instead of the supplier weakens your proof that the purchase was genuine. Payment trails are one of the things officers check when tracing fake invoice chains. Pay only into the invoicing supplier's own account.

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), second proviso, CGST Act 2017If the supplier is not paid within 180 days of the invoice, ITC must be reversed with interest
3. A

   Analysis

   In fake invoice rackets, money is often routed through other accounts and returned. Even if your supplier is honest, a third-party payment makes it hard to show you paid him the value and tax. Example: Rs 5.9 lakh paid to a cousin's firm for a supplier's invoice may be questioned in a notice. Insist on payment to the account in the supplier's name, ideally matching the bank details on the GST portal.

4. C

   Conclusion

   1. 1Refuse payment to any account not in the supplier's legal name
   2. 2Get the supplier's bank details on letterhead and match with his registration
   3. 3Pay by NEFT, RTGS or cheque, not cash
   4. 4Keep the bank proof in the purchase 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.