GSTAT and various High Courts rule that toll receipts are not essential to prove goods movement; valid tax invoices, e-way bills suffice for claiming ITC.
Toll Receipts Not Required to Claim Input Tax Credit: Rulings Confirm
Multiple tribunals and courts, including the Gujarat State GST Appellate Tribunal (GSTAT) and several High Courts, have held that the absence of toll receipts does not disqualify a taxpayer from claiming Input Tax Credit (ITC), provided other transport records such as tax invoices, e-way bills, and logistics manifests are in order.
The Gujarat tribunal recently dismissed an ITC denial based solely on missing toll data, noting that 'goods movement' under Section 16(1) of the CGST Act must be assessed on a preponderance of evidence. The e-way bill system, being government-mandated and digitally verifiable, serves as sufficient proof of movement absent evidence of fraud.
This body of rulings offers significant relief to taxpayers in logistics-intensive sectors. Practitioners should emphasize the legal hierarchy of documents—official e-way bills outweigh private toll receipts. However, where toll data is available, it remains supplementary. Authorities are cautioned against using its absence as a standalone ground to deny ITC, aligning with the principles laid down in Commissioner of GST v. Altran Technologies.
Citations
- CGST Act, 2017, Section 16(1)
