India: Proof required for claiming input VAT credit (Supreme Court decision)

Production of invoices and/or payment by check will not suffice

Supreme Court decision

The Supreme Court held that a taxpayer claiming input tax credit for purposes of Karnataka value added tax (VAT) must provide proof of the relevant transaction by providing

  • Name and address of the selling dealer
  • Details of the vehicle that delivered the goods
  • Payment of freight charges
  • Acknowledgment of taking delivery of goods
  • Tax invoices
  • Payment particulars

The mere production of invoices and/or payment by check will not be sufficient.

The case is: The State of Karnataka v. Ecom Gill Coffee Trading Private Limited

Read a March 2023 report [PDF 364 KB] prepared by the KPMG member firm in India 



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