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Invoice Under GST; Less Fraud, More Business

Matching of invoice under GST is a brilliant move to check fraud and drive more businesses to the formal economy, but by taking it one step further and linking tax payment by a supplier, to the availability of Input Credit to the buyer, the beauty of the system completely breaks down.

To understand this, it is very important to know what input credit will do. One of the fundamental features of GST is seamless flow of input credit across the chain (from the manufacture of goods till it is consumed) and across the country.

All of the following conditions need to be satisfied to avail Input credit:

  • The dealer should be in possession of Tax Invoice / Debit or Credit Note / Supplementary Invoice issued by a supplier registered under GST Act.
  • The said goods/services have been received.
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