Amended and updated notes on section 155 of CGST Act, 2017. Detail discussion on provisions and rules related to burden of proof.
Chapter XXI (Sections 143–174) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to miscellaneous. Section 155 of CGST 2017 provides for burden of proof.
Recently, we have discussed in detail section 154 (Power to take samples) of CGST Act 2017. Today, we learn the provisions of section 155 of Central GST Act 2017.
Section 155 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. This notification was come into force from 22nd June, 2017 i.e. the commencement date of section 155 is 22-6-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | XXI |
| Chapter Name | Miscellaneous |
| Section No. | 155 |
| Section Name | Burden of proof |
| Updated 2025 Edition | GST Law Book PDF |
Section 155 of Central GST – Burden of proof1
Section 155 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017.
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.
- Section 155 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. ↩︎
Notes on Section 155 of CGST Act
Explanation of CGST Section 155:
If a taxpayer (registered person) wishes to claim Input Tax Credit (ITC) under GST, they must provide valid proof to justify their eligibility. The responsibility of proving that the conditions for availing ITC have been met rests solely on the taxpayer.
Implications:
- Documentary Evidence:
- The taxpayer must maintain and furnish necessary documents such as invoices, debit notes, e-way bills, and tax payment receipts to substantiate the ITC claim.
- Compliance with ITC Conditions (Section 16):
- The taxpayer must ensure that ITC is claimed only on eligible goods or services and that the supplier has deposited the tax with the government.
- Verification by Authorities:
- If the GST department raises any doubts or disputes the ITC claim during an audit, assessment, or investigation, the taxpayer must provide evidence supporting their claim.
- Denial of ITC if Not Proven:
- If the taxpayer fails to prove the validity of their ITC claim, the tax authorities can reject the claim and demand reversal of ITC along with interest and penalty under applicable provisions.
Practical Example:
Suppose XYZ Pvt. Ltd. claims ITC of ₹50,000 based on invoices received from a supplier. If the GST authorities question this claim, AUBSP Pvt. Ltd. must prove that:
✔ The invoice is genuine.
✔ The supplier has filed GST returns and paid the tax.
✔ The goods/services were actually received.
✔ The claim is within the time limit specified under the Act.
If they fail to provide sufficient proof, the ITC claim may be denied, leading to financial consequences.
Conclusion:
Section 155 reinforces the principle that ITC is a benefit, not a right, and places the onus on taxpayers to establish their entitlement. Proper documentation and compliance with GST rules are essential to avoid disputes and penalties.