Fraudulent input tax credit demands require proof of fictitious supplies, absent deliveries, and culpable conduct beyond supplier cancellation alone.
Notes
GST
Input tax credit claimed from non-existent suppliers requires proof of actual receipt of goods or services, not merely invoices, portal registration, and banking payments. Section 155 places the burden of proving entitlement on the claimant, who may need transaction-specific evidence of transport, delivery, stock, consumption, and linkage to taxable activity. Section 74 applies only where wrongful credit is shown to arise from fraud, wilful misstatement, or suppression to evade tax; it cannot rest solely on retrospective supplier-registration cancellation or incomplete evidence. Fictitious suppliers from inception, no proof of physical supply, and fraudulent self-assessment may collectively support a fraud demand. A notice must disclose those foundational facts, identify periods and computation, and cannot confirm liability beyond its stated grounds; where fraud is not established, tax may be determined under Section 73.
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