Section 155 of CGST Act: Burden of Proof for Input Tax Credit
Section 155 of the Central Goods and Services Tax Act, 2017 places the burden of proving eligibility for input tax credit (ITC) on the person who claims the credit.
Text of Section 155 - Burden of proof
"Where any person claims that he is eligible for input tax credit under this Act, the burden of proving such claim shall lie on such person."
In practical terms, a taxpayer cannot rely only on the fact that an ITC amount appears in a return or system-generated statement. When eligibility is questioned, the claimant must be able to establish that the credit satisfies the applicable provisions of the CGST Act and the CGST Rules.
What Section 155 means
- Claimant bears the burden: the person claiming ITC must establish legal eligibility for that credit.
- Eligibility remains provision-based: Section 155 is a rule about burden of proof; the substantive conditions for ITC arise principally from provisions such as the CGST Act, including Sections 16 and 17, and the applicable rules.
- Records matter: invoices, debit notes, books of account, return data, evidence of receipt of goods or services, and other relevant records may be important depending on the nature of the claim.
- Auto-populated data is not conclusive by itself: GST portal guidance states that taxpayers must assess ITC eligibility even where credit is reflected in Form GSTR-2B.
Relationship with Section 16 of the CGST Act
Section 16 governs eligibility and conditions for taking input tax credit. Accordingly, a person relying on an ITC claim should be in a position to demonstrate compliance with the conditions that apply to that claim, including possession of the prescribed tax document, receipt of goods or services or both, satisfaction of the statutory tax-payment condition, furnishing of the required return, and compliance with applicable time limits and other restrictions.
The exact evidence required depends on the facts. For example, documentary records may be examined to establish the underlying supply, receipt of goods or services, the tax document, accounting treatment, payment-related requirements, return reporting, reversals or reclaims, and whether the credit is blocked or otherwise restricted.
Section 155 and Form GSTR-2B
Form GSTR-2B is an important ITC statement, but GST portal guidance expressly cautions that there can be situations in which ITC is not available even though the system does not mark it as unavailable. The taxpayer is advised to self-assess eligibility and make the appropriate claim or reversal in Form GSTR-3B.
Documents and evidence commonly relevant to an ITC claim
| Area | Examples of relevant material |
|---|---|
| Tax document | Tax invoice, debit note or other document prescribed under the GST law. |
| Receipt of supply | Goods receipt records, e-way bill where applicable, delivery documents, service records, contracts, work completion material or other evidence suited to the transaction. |
| Books and accounting | Purchase register, ledger entries, stock records, expense or asset records and reconciliation statements. |
| GST return trail | Relevant GSTR-2B and GSTR-3B details, supplier-reported information and reconciliations. |
| Payment and reversals | Payment records and evidence concerning any reversal, reclaim or other condition applicable under the Act or Rules. |
| Eligibility restrictions | Material showing that the credit is not barred or restricted under provisions such as Section 17(5), where relevant. |
Practical compliance approach
A taxpayer claiming ITC should maintain a clear audit trail from the tax invoice to the underlying supply, books of account and GST returns. Periodic reconciliation of purchase records with GSTR-2B and GSTR-3B can help identify missing invoices, duplicate claims, reversals, reclaims and other discrepancies before they become the subject of a notice or demand proceeding.
Where the GST system identifies a specified difference between ITC available in GSTR-2B and ITC claimed in GSTR-3B or GSTR-3BQ, the GST portal provides for an intimation and response process through Form GST DRC-01C. This procedural mechanism does not replace the underlying requirement to establish ITC eligibility under the Act.
Related CGST Act provisions
Section 155 forms part of Chapter XXI (Miscellaneous). For nearby provisions, see Section 153 - Taking assistance from an expert, Section 154 - Power to take samples, Section 156 - Persons deemed to be public servants, and Section 157 - Protection of action taken under this Act.
Official resources
For the authoritative statutory text and current GST compliance material, refer to the India Code, the GST Portal, and the CBIC GST portal.
This article is a general explanation of Section 155 and should be read with the current CGST Act, CGST Rules, notifications, circulars and applicable judicial decisions relevant to the facts of a particular case.