As per section 35 we can keep records in electronic format. However I specially need 2 know about sales bills issued by my vendor which are purchase bills 2 me.
As per GST ITC rules, I must have the tax invoice to avail itc on purchase. now my question is whether itc is allowed against xerox / scanned purchase bills?
2 Replies
CA Buddies
(53 Points)
Replied 17 August 2020
As per my knowledge,
If voucher amount is less than Rs 50,000 then the criteria for claiming ITC will be - whether this transaction is shown in GST return by seller in GST-R 1 or not.
But when voucher amount is more than Rs 50,000 then the criteria for claiming ITC will be - whether E-waybill had been generated or not, since E -waybill is mandatory for movement of goods of value exceeding Rs 50,000.
First criteria is not sufficient for voucher of more than Rs 50,000 because people may pay GST for fake purchase of goods form his known supplier, so that supplier show this in GSTR 1 & also take ITC @ 5% or 18%(whichever applicable), and he can take deduction of that purchase and can save income tax @ 30% + cess.
please reply whether you understood my point not?
If voucher amount is less than Rs 50,000 then the criteria for claiming ITC will be - whether this transaction is shown in GST return by seller in GST-R 1 or not.
But when voucher amount is more than Rs 50,000 then the criteria for claiming ITC will be - whether E-waybill had been generated or not, since E -waybill is mandatory for movement of goods of value exceeding Rs 50,000.
First criteria is not sufficient for voucher of more than Rs 50,000 because people may pay GST for fake purchase of goods form his known supplier, so that supplier show this in GSTR 1 & also take ITC @ 5% or 18%(whichever applicable), and he can take deduction of that purchase and can save income tax @ 30% + cess.
please reply whether you understood my point not?
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