Section 155 puts the burden of proving entitlement to input tax credit on the person who claims it.
Key points
- Under section 155 of the CGST Act, 2017 the burden of proving eligibility for input tax credit lies on the person claiming it.
- The Supreme Court held under the corresponding provision of the Karnataka VAT Act that invoices and payment by cheque are not enough; the buyer must prove the actual transaction, including movement of goods and the seller's identity (Ecom Gill Coffee Trading, 2023).
The provisions
155Burden of proof
Statutory text
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.
* Enforced w.e.f. 1st July, 2017.
Case on this provision
State of Karnataka v Ecom Gill Coffee Trading Pvt Ltd
2023 INSC 212; (2023) 18 SCC 809 · 13.03.2023 · Supreme Court, 2 Judges (M.R. Shah, C.T. Ravikumar JJ.)
- Facts
- A coffee trader claimed input tax credit on purchases of green coffee from several dealers, some of whom were found non-existent or whose registrations had been cancelled. The trader produced invoices and proof of payment by cheque. The Karnataka High Court allowed the credit.
- Held
- Reversed. Under section 70 of the Karnataka VAT Act the burden of proving the claim lies on the dealer claiming credit. Invoices and payment by cheque are not enough; the dealer must prove the actual transaction — the identity of the seller, the physical movement of goods, and payment of tax by the seller — through evidence such as transport documents and delivery records.
- Since then
- Section 155 of the CGST Act places the same burden on a GST claimant; the Supreme Court has since affirmed the Gujarat High Court's judgment upholding section 16(2)(c), in Bhandari Scrap Traders (2026).
- Here
- A buyer accused of claiming credit on paper invoices must show the supply actually happened; keeping e-way bills, transport receipts and goods-receipt records is the practical answer.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Who must prove eligibility for GST input tax credit?
- The person claiming it (section 155 CGST). Invoices and payment alone may not suffice where the transaction is doubted; the buyer must prove the real supply.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The burden is discharged by evidence of the real transaction — invoices, e-way bills, transport and receipt records, payment, and the supplier's existence. Where the department alleges a fake supplier, the buyer should be shown the material and allowed to rebut it.