CGST Act Section 155 – Burden of Proof

Section 155 at a Glance

SubjectBurden of proving eligibility for input tax credit.

Who bears it?The person claiming that they are eligible for ITC under the CGST Act.

Practical focusMaintain sufficient records and evidence supporting the ITC claim.

In simple language: If a person claims input tax credit, Section 155 places the burden of proving that eligibility on that person. The section is short, but it is important because an ITC claim should be supported by the underlying documents, transaction records, receipt evidence, accounting records and other applicable conditions.

1. Statutory Text of Section 155

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.

Current-law position: The current CGST Act continues to contain Section 155 in this form. India Code and CBIC materials place it immediately after Section 154 and before Section 156.

2. Section 155 Explained in Simple Language

Section 155 answers a basic but important question: who has to prove an ITC claim?

The answer is the person who claims eligibility for the input tax credit. If a registered person claims that a particular amount is eligible ITC, that person has the statutory burden of proving the claim.

This does not mean that one particular document proves every ITC claim. Rather, the business should be able to establish the relevant facts and satisfy the applicable conditions through appropriate evidence.

Simple example: A company claims ₹5 lakh of ITC on purchases. If the eligibility of that credit is questioned, the company should be able to produce the records supporting the claim, such as the relevant tax documents, purchase records, receipt evidence, accounting entries and other evidence required by the applicable provisions.

3. Who Bears the Burden?

The statutory wording is broad: “any person” who claims eligibility for ITC bears the burden of proving that claim.

Claimant	Section 155 position	Practical evidence
Registered company	The company claiming ITC must support its eligibility.	Invoices, purchase register, receipt records, ledger, return/reconciliation records and applicable supporting documents.
Partnership / LLP	The entity claiming the credit must support the claim.	Books, invoices, receipt evidence, GST records and transaction trail.
Proprietorship	The person claiming ITC bears the burden.	Business records and prescribed tax documents.
Other eligible registered person	The person making the ITC claim must establish eligibility.	Evidence appropriate to the transaction and statutory conditions.

Important: Section 155 does not mean that every ITC dispute is decided solely by one document. The evidence required depends on the applicable ITC provision, the nature of the supply, the facts and the issue being examined.

4. What Must Be Proved?

Section 155 says the claimant must prove the claim of eligibility. The exact facts to be established depend on the applicable provisions of the CGST Act and Rules.

For ordinary inward supplies, relevant questions can include:

Was there an actual supply of goods or services or both?
Was the claimant the recipient?
Is there an appropriate tax invoice, debit note or other prescribed document?
Were the goods or services actually received?
Was the supply used or intended to be used in the course or furtherance of business?
Is the credit restricted or blocked under another provision?
Were applicable time limits and procedural requirements satisfied?
Are the books and GST returns consistent with the claim?

The exact legal requirements should always be checked against the current version of the relevant provision. Section 155 itself does not create a separate list of all ITC conditions; it allocates the burden of proving eligibility.

5. Connection with Section 16

Section 16 contains the principal eligibility and conditions framework for input tax credit. Section 155 should therefore be read alongside the applicable ITC provisions rather than in isolation.

Issue	Section 155 role	Related ITC framework
Eligibility	Claimant bears the burden of proving the claim.	Section 16 and other applicable ITC provisions.
Tax document	Claimant should establish the documentary foundation for the claim.	Section 16 and prescribed invoice/document rules.
Receipt of supply	Evidence may be required to support the claimed transaction.	Section 16 and applicable rules.
Blocked credit	Claimant must establish that the credit is not disallowed.	Section 17(5) and other applicable provisions.
Time limits	Claimant must establish compliance where relevant.	Section 16 and current amendments/provisions.

CBIC's ITC material lists documentary requirements and conditions for claiming ITC, including prescribed tax documents. The exact requirements applicable to a particular claim should be checked for the relevant tax period.

6. Documents Supporting ITC

A strong ITC file normally contains more than just an invoice. The appropriate evidence depends on the transaction.

Evidence	What it can help establish
Tax invoice / debit note	Documentary basis of the taxable supply and tax charged.
Purchase order / contract	Commercial terms and business purpose.
Goods receipt note	Receipt of physical goods.
Delivery challan / e-way bill records	Movement and delivery trail where applicable.
Service completion records	Evidence supporting receipt/performance of services.
Purchase register	Accounting and transaction-level ITC trail.
General ledger	Accounting recognition of the transaction.
Bank/payment record	Commercial payment trail where relevant.
GSTR-2B / portal data	Reconciliation evidence and supplier-reported invoice information.
GSTR-3B	Return-level disclosure of ITC claimed, subject to the relevant return framework.
Stock register	Movement and receipt of goods.
Technical/project records	Useful for specialised supplies such as works contracts, machinery or project inputs.

Key point: A document should support the particular fact it is being used to prove. For example, an invoice may establish the billed transaction, while a goods receipt record can help establish actual receipt of goods.

7. GSTR-2B and Reconciliation

For modern GST compliance, businesses commonly reconcile their purchase register with GSTR-2B. This is an important control, but the reconciliation itself should not be confused with the entire statutory burden under Section 155.

Reconciliation result	What it may indicate	Next action
Invoice matched	Purchase and supplier-reported details broadly correspond.	Verify remaining ITC conditions and retain evidence.
Missing in 2B	Supplier-reported data is not appearing in the relevant 2B.	Investigate supplier filing, document validity, timing and applicable ITC rules.
Value mismatch	Purchase register and 2B contain different values or tax amounts.	Compare invoice, credit/debit notes and supplier data.
Duplicate	Potential duplicate accounting or portal reporting.	Check invoice number, supplier GSTIN and accounting entries.
Period mismatch	Invoice appears in a different reporting period.	Trace invoice date, filing period and applicable timing rules.

Important: Matching in GSTR-2B does not by itself prove every condition for ITC, and absence from GSTR-2B does not by itself answer every legal question. The complete claim must be evaluated under the applicable law and facts.

8. Proving Receipt of Goods or Services

One of the practical areas in which Section 155 becomes important is demonstrating that the underlying supply actually occurred and was received by the claimant.

For goods

Goods receipt notes.
Warehouse inward records.
Transport documents where applicable.
Gate entry records.
Stock ledger movement.
Quality inspection records.
Project-site material receipt records.

For services

Work completion certificates.
Service reports.
Contracts and work orders.
Timesheets or attendance records where relevant.
Milestone certificates.
Email/correspondence showing performance.
Accounting and payment records.

Example:

A contractor claims ITC on ₹20 lakh of machinery. The invoice is available, but the company should also be able to connect the machinery to delivery, receipt, asset records and business use, as applicable to the claim.

9. Supplier Payment and Tax-Related Evidence

Payment records can form part of the commercial evidence surrounding a transaction. Depending on the relevant statutory requirement and tax period, the business should preserve the payment trail and supplier account reconciliation.

However, businesses should avoid reducing Section 155 to a single “bank payment proof” test. ITC eligibility is governed by the applicable GST provisions, and different conditions may apply to different transactions.

Record	Practical purpose
Bank statement	Shows payment movement.
Supplier ledger	Shows invoice, payment and outstanding balance.
Payment voucher	Internal accounting evidence.
Vendor reconciliation	Helps identify outstanding, reversed or disputed invoices.
Contract terms	Explains payment milestones and commercial obligations.

10. Books and Accounting Trail

An ITC claim should be traceable through the accounting system. A good audit trail allows a reviewer to move from the GST return to the ITC register, purchase invoice, ledger and underlying transaction evidence.

Return → ITC registerIdentify exactly which invoices contributed to the claimed credit.

ITC register → invoiceTrace each credit to the underlying tax document.

Invoice → receipt/useConnect the invoice with actual receipt and business use where relevant.

Useful audit trail

GSTR-3B ITC figure → monthly ITC working → purchase register → supplier GSTIN/invoice → tax invoice → receipt/service evidence → ledger → payment/reconciliation → supporting contract.

11. Evidence Matrix for an ITC Claim

Question	Possible evidence	Control
Who supplied?	Tax invoice, supplier GSTIN, purchase order.	Vendor master validation.
What was supplied?	Invoice, PO, product/service description.	Invoice-to-PO review.
Was it received?	GRN, delivery record, service completion evidence.	Receipt matching.
Was it recorded?	Purchase register, ledger, ERP entry.	Accounting reconciliation.
Does supplier data correspond?	GSTR-2B and supplier communication.	2B reconciliation.
Is credit restricted?	Expense classification and business-use review.	Blocked-ITC checklist.
Was ITC claimed correctly?	ITC working and GSTR-3B.	Maker-checker review.

12. Detailed Practical Examples

Example 1 – Normal purchase invoice

A company purchases raw material, receives the goods, records the invoice and claims ITC. If eligibility is questioned, the company can support the claim through invoice, GRN, stock records, purchase ledger and applicable GST reconciliation.

Example 2 – Invoice exists but goods were not received

An invoice is recorded but there is no credible evidence that the goods were received. The existence of the invoice alone may not resolve the eligibility question because the applicable ITC conditions must be satisfied.

Example 3 – Service invoice

A company claims ITC on professional services. The supporting file includes the engagement letter, invoice, service deliverables, correspondence and accounting entry.

Example 4 – Missing from GSTR-2B

An invoice is in the purchase register but not in GSTR-2B. The finance team investigates supplier filing, invoice details, reporting period and the applicable legal treatment rather than treating the reconciliation status as the final legal answer.

Example 5 – Value mismatch

The purchase register shows ₹1,00,000 taxable value and the 2B data shows a different amount. The team checks the invoice, amendments, credit/debit notes and supplier filing before determining the appropriate ITC treatment.

Example 6 – Capital goods

A company claims ITC on machinery. It maintains the invoice, delivery documents, fixed-asset register, installation record and payment/accounting trail.

Example 7 – Works contract/project expense

A construction company claims ITC on project inputs. Supporting evidence may include work orders, invoices, site receipt records, material consumption records and project accounting, subject to the applicable ITC restrictions.

Example 8 – Multiple GST registrations

A group operates several GSTINs. An invoice belongs to GSTIN A but is accidentally included in GSTIN B's ITC working. A GSTIN-wise reconciliation is necessary to establish the correct claimant.

Example 9 – Duplicate invoice

The same invoice is entered twice in the purchase register. The claimant should identify and remove/reverse any duplicate credit as required rather than relying on the fact that the supplier reported the invoice.

Example 10 – Blocked credit review

An invoice is genuine and appears in 2B, but the underlying expense falls within a statutory restriction. The business must examine the applicable blocked-credit provision; 2B matching alone does not establish eligibility.

Example 11 – Supplier correction

A supplier corrects invoice details in a subsequent period. The recipient preserves the original invoice, communication and reconciliation trail explaining the change.

Example 12 – Audit query

The department asks why ₹12 lakh of ITC was claimed. The business prepares an invoice-level reconciliation linking the amount to source documents and relevant eligibility checks.

Example 13 – Payment reconciliation

A vendor ledger shows invoices outstanding beyond the business's expected payment cycle. The finance team checks the applicable GST rule and transaction facts rather than automatically treating every outstanding invoice as ineligible.

Example 14 – Service received at project site

A service provider performs work at a remote project location. Site completion certificates, attendance records, work orders and invoices help establish the service trail.

Example 15 – Digital records

The ITC working is generated from an ERP. The company preserves the source purchase register, extraction logic and reconciliation file so that the claimed amount can be traced back to source records.

13. Responding to an ITC Query or Notice

When an authority questions ITC eligibility, the response should be organised around the actual issue rather than submitting a large unstructured bundle.

Step	Recommended action
1. Identify disputed amount	Prepare invoice-level list of the ITC under question.
2. Categorise issue	Missing document, receipt issue, 2B mismatch, blocked credit, duplicate, timing or another issue.
3. Build evidence index	Assign document references to each disputed invoice.
4. Reconcile books	Match purchase register, ledger and return data.
5. Reconcile portal data	Check relevant GSTR-2B information and supplier corrections.
6. Check legal condition	Map the factual evidence to the applicable ITC provision.
7. Prepare explanation	State facts clearly and separately address each disputed category.
8. Preserve submission trail	Keep the final response, annexures and supporting evidence.

14. Burden of Proof, Onus and Evidence

These terms are often used interchangeably in everyday tax discussions, but it is useful to keep the practical idea clear.

Concept	Simple explanation
Burden of proof	The statutory responsibility identified by Section 155 for the person claiming ITC to prove the claim.
Evidence	The documents, records and other material used to establish the relevant facts.
Eligibility condition	A requirement under the applicable GST law that must be satisfied for credit to be available.
Reconciliation	A control process comparing different data sources to identify mismatches and support the transaction trail.
Tax authority's finding	The conclusion reached in the applicable statutory proceeding after considering the facts, law and evidence.

Practical takeaway: Section 155 tells you who carries the burden. The applicable ITC provisions tell you what eligibility conditions must be met. Your records provide the evidence used to establish those facts.

15. Section 155 vs Related Provisions

Provision	Main subject	Connection with Section 155
Section 16	Eligibility and conditions for ITC.	Provides key substantive ITC conditions that the claimant may need to establish.
Section 17	Apportionment and blocked credits.	May restrict otherwise claimed credit; claimant should consider applicable restrictions.
Section 18	ITC in special circumstances.	Provides separate rules for specified situations.
Section 41	Claim of ITC and provisional acceptance framework.	Forms part of the ITC claim framework.
Section 155	Burden of proof.	Places the burden of proving an ITC eligibility claim on the claimant.
Section 70	Summons.	Concerns attendance, evidence and document production; it does not itself allocate the ITC burden.
Section 73/74	Determination of tax not paid/short paid or ITC wrongly availed or utilised under the applicable provisions.	May involve examination of whether claimed ITC was legally available; Section 155 addresses who must prove eligibility.
Section 75	General provisions relating to determination of tax.	Provides procedural rules for proceedings in which ITC disputes may arise.

16. Strong ITC Controls for Finance Teams

Invoice-level evidenceEvery material ITC claim should be traceable to its source document.

2B reconciliationCompare purchase records with portal data and investigate exceptions.

Eligibility reviewCheck business use, blocked-credit rules, timing and other applicable conditions.

Recommended monthly control

Import the purchase register.
Reconcile supplier GSTIN and invoice number with available portal data.
Identify matched, missing, mismatch and duplicate records.
Review blocked-credit categories.
Check receipt/service evidence for material or sensitive transactions.
Prepare the ITC working linked to GSTR-3B.
Have a reviewer sign off the final ITC claim.
Archive the working and source evidence by GSTIN and tax period.

17. Common Mistakes

Mistake 1 – Thinking the invoice alone proves everything

An invoice is important evidence, but the complete eligibility question can involve other statutory conditions.

Mistake 2 – Treating GSTR-2B matching as conclusive

2B reconciliation is an important control, but eligibility must still be checked under the applicable law.

Mistake 3 – Ignoring receipt evidence

Businesses should maintain appropriate evidence of receipt or performance of the underlying supply.

Mistake 4 – Claiming ITC at the wrong GSTIN

For multi-registration businesses, the claimant and place of supply/receipt facts should be reviewed carefully.

Mistake 5 – Ignoring blocked credit

A genuine invoice and supplier reporting do not automatically overcome a statutory restriction on ITC.

Mistake 6 – Poor audit trail

A spreadsheet showing a total ITC number without invoice-level source linkage can make a later verification unnecessarily difficult.

Mistake 7 – Losing original source data

Keep the original purchase register and portal download files used for the reconciliation.

Mistake 8 – Mixing periods

Retain a clear period-wise trail for invoices appearing in different reporting periods.

18. Finance-Team Workflow for Section 155 Compliance

Step	Action	Output
1	Collect purchase data.	Purchase register.
2	Collect relevant GST portal data.	GSTR-2B reconciliation source.
3	Match supplier GSTIN and invoice number.	Matched/mismatch report.
4	Check value and tax amount.	Value/tax exception list.
5	Check receipt and business-use evidence.	Eligibility support file.
6	Review blocked-credit provisions.	Eligible/ineligible classification.
7	Prepare GSTR-3B ITC working.	Return support schedule.
8	Reviewer approval.	Maker-checker sign-off.
9	Archive evidence.	GSTIN/month-wise audit file.

19. Questions People Commonly Search

20. Frequently Asked Questions

1. What is Section 155 of the CGST Act?

Section 155 provides that where a person claims eligibility for input tax credit under the CGST Act, the burden of proving that claim lies on that person.

2. Who has the burden of proof for ITC?

The person claiming that they are eligible for the ITC bears the burden under Section 155.

3. Does Section 155 apply to every ITC claim?

Yes, the statutory wording applies where any person claims eligibility for input tax credit under the Act.

4. What does “burden of proving such claim” mean?

It means the claimant must establish the basis for saying that the ITC is eligible under the applicable GST provisions.

5. Is an invoice enough to prove ITC?

An invoice is an important document, but the applicable ITC conditions may require additional factual and documentary support.

6. Does GSTR-2B prove ITC eligibility?

No. GSTR-2B is an important reconciliation source, but the complete ITC eligibility analysis depends on the applicable law and facts.

7. What evidence can support receipt of goods?

Depending on the transaction, GRNs, delivery records, stock entries, transport records, gate entries and other contemporaneous records can support the receipt trail.

8. What evidence can support receipt of services?

Contracts, work orders, completion certificates, service reports, correspondence, timesheets or other transaction-specific records may be relevant.

9. Does Section 155 itself list all ITC conditions?

No. Section 155 allocates the burden of proof. The substantive eligibility conditions are found in the relevant ITC provisions and rules.

10. Does a supplier's GST return automatically make ITC valid?

No. Supplier reporting is relevant evidence, but the recipient's own ITC eligibility must be examined under the applicable provisions.

11. What if an invoice is missing from GSTR-2B?

The business should investigate the reason, reconcile the supplier data and evaluate the applicable legal treatment for the relevant period. The 2B status alone should not be treated as the complete legal analysis.

12. What if the invoice is in 2B but the expense is blocked credit?

The statutory restriction should still be considered. Portal matching does not override a blocked-credit provision.

13. Does Section 155 mean the department has no burden at all?

Section 155 specifically places the burden of proving the ITC eligibility claim on the claimant. The conduct of a particular assessment, audit or adjudication is governed by the applicable statutory provisions and procedural rules.

14. Does Section 155 apply to capital goods?

Yes, where a person claims ITC on eligible capital goods, the claimant must establish the eligibility of that credit under the applicable provisions.

15. Does Section 155 apply to services?

Yes. The section applies to claims of input tax credit generally, while the applicable conditions depend on the nature of the supply and the relevant law.

16. How should companies with multiple GSTINs manage Section 155?

Maintain GSTIN-wise invoice, receipt, ledger, reconciliation and ITC records so that each claim can be traced to the correct registered person.

17. Is Section 155 currently in force?

Yes. Section 155 remains part of the CGST Act and has been in force from 1 July 2017.

18. What is the best practical control for Section 155?

An invoice-level ITC evidence trail linking purchase records, tax documents, receipt evidence, portal reconciliation, accounting records and the return working is a strong practical control.

21. Quick Revision – Section 155

Section 155 = Burden of proof.
It applies where a person claims eligibility for input tax credit.
The person making the ITC claim bears the burden of proving the claim.
Section 155 itself is short and does not list every ITC condition.
Read it together with the applicable ITC provisions, especially the relevant conditions for the claim.
Maintain tax invoices and other prescribed documents.
Maintain evidence of receipt of goods or services where relevant.
Reconcile purchase records with available GST portal data.
Check blocked-credit provisions separately.
Maintain GSTIN-wise and period-wise audit trails.
GSTR-2B matching is a control, not a substitute for the complete eligibility analysis.
The stronger the transaction-level evidence trail, the easier it is to demonstrate the basis of an ITC claim when questioned.

22. Legal Disclaimer

This page is provided for general educational and GST compliance-workflow purposes. Section 155 should be read together with the current CGST Act, CGST Rules, notifications, circulars and judicial decisions applicable to the relevant tax period and transaction. The examples on this page are illustrative and do not determine whether a particular ITC claim is legally eligible. This page is not a substitute for professional legal or tax advice.

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Section 155 of the CGST Act, 2017