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
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.