Short answer
To claim input tax credit under GST you generally need a valid tax invoice from a registered supplier, showing their name, address and GSTIN, a unique serial number, the date, your GSTIN, a description, the taxable value and the tax charged. Keep GST books and records for 72 months from the due date of the annual return for that year.
Key takeaways
- Possession of a tax invoice or debit note is a core condition for input tax credit under section 16 of the CGST Act.[1]
- A tax invoice carries the supplier's GSTIN, a serial number unique for the financial year, the date, the recipient's GSTIN where registered, values and tax.[2]
- Keep accounts and records for 72 months from the due date of the annual return for the year.[3]
- If your CA uses TallyPrime, a clean CSV now and a Tally-ready import file later save re-typing.
What a GST tax invoice must show
Rule 46 of the CGST Rules lists the particulars of a tax invoice.[2] When you check a supplier's bill before booking input tax credit, look for:
| Particular | Why it matters for you |
|---|---|
| Supplier's name, address and GSTIN | Credit is available only on invoices from registered suppliers |
| Serial number (up to 16 characters, unique for the financial year) | Identifies the invoice; duplicates cause mismatches |
| Date of issue | Places the credit in the right period |
| Your name, address and GSTIN (if registered) | Without your GSTIN the supplier's return cannot pass the credit to you |
| HSN code or accounting code, and description | Shows what was supplied |
| Quantity, value, taxable value | Basis for the tax |
| Rate and amount of tax (CGST, SGST/UTGST or IGST) | The credit you claim |
| Place of supply (inter-State) | Decides IGST vs CGST + SGST |
| Signature or digital signature | Authenticates the invoice |
- Input tax credit (ITC)
- The GST you pay on business purchases that you can set off against the GST you collect on sales, subject to the conditions in section 16 of the CGST Act — including holding a valid tax invoice.
Receipts versus tax invoices
A shop receipt or a UPI payment confirmation is proof of payment. It is not, on its own, a tax invoice. Section 16 of the CGST Act makes possession of a tax invoice or debit note from a registered supplier one of the conditions for credit,[1] and the supplier's reporting of that invoice is what makes the credit visible to you in your GST returns.
- Ask for a GST invoice with your GSTIN whenever you buy for the business. Fuel stations, hotels and suppliers will usually issue one on request.
- Small cash purchases from unregistered sellers do not give you credit; they may still be allowable business expenses for income tax, so keep the receipt.
- Check the GSTIN is yours and the supplier's is valid; a typo costs you the credit.
How long to keep GST records
Section 36 of the CGST Act requires a registered person to keep books of account and records until the expiry of seventy-two months from the due date of furnishing the annual return for the year they relate to. If you are party to an appeal, revision or other proceeding, or under investigation, keep the relevant records for one year after final disposal or the 72-month period, whichever is later.[3]
Because the clock starts from the annual return's due date, a purchase bill can need to survive for well over six years. Paper bills fade; capture them.
Handing your CA a clean set of records
- Capture each purchase bill in NexaLink Scanner when you receive it — merchant, date, total and tax are read on your phone.
- Check the GST amount; anything the app is unsure of is flagged for you to confirm.
- Use categories for expense heads and (on Pro) projects for jobs, sites or clients.
- Monthly, export the CSV and share it with the bill images your CA asks for.
- If your CA uses TallyPrime, see the TallyPrime page: CSV works today, and a Tally-ready import file is planned. Zoho Books users, see Zoho Books.
Indian prices are shown in rupees on our pricing: Pro is ₹399 a month or ₹2,999 a year (proposed list prices).
Key facts about NexaLink Scanner
- What it is: NexaLink Scanner is a private receipt and expense organiser for iOS and Android, built for freelancers, sole traders, contractors and small businesses. It is not accounting software and does not file tax returns.
- How it reads receipts: text is read on the phone (on-device OCR) and capture works offline. Merchant, date, total and tax are filled in; any value it is unsure of is flagged, and a low-confidence total cannot be saved until you confirm it.
- Where data lives: receipts are stored on your phone and do not sync to the web. Data leaves only when you export it.
- Free plan: 50 receipts, on-device reading, search, 5 default categories and CSV export. CSV export is free on every plan, always.
- Pro: $4.99 a month or $39.99 a year — unlimited receipts, custom categories, projects and tags, a PDF expense report in the app, tax and multi-currency reports. Image ZIP export and Xero / QuickBooks import files are coming soon.
- Accounting connections (none live yet): Xero — First · V1.1 · QuickBooks Online — Next · V1.2 · FreeAgent — Planned · Sage Accounting — Planned · Zoho Books — Planned · TallyPrime — Import file first. CSV export works with any accounting tool today. Status as of 2026-11-10; see accounting integrations.
Frequently asked questions
Is a payment receipt enough to claim GST input tax credit?
Generally no. Section 16 of the CGST Act requires possession of a tax invoice or debit note issued by a registered supplier, among other conditions.[1]
How long should I keep GST invoices?
72 months from the due date of the annual return for the year they relate to, or longer if an appeal or investigation is pending.[3]
What should I check on a GST invoice?
The supplier's GSTIN, a unique serial number, the date, your GSTIN, the description and HSN/SAC, taxable value, tax rate and amount, and place of supply for inter-State purchases.[2]
Can I keep GST bills digitally?
Many businesses keep scanned bills as their working records. Keep the images complete and legible and check with your CA whether originals are needed for any specific document.
Does NexaLink Scanner connect to Tally?
Not directly. TallyPrime has no cloud API; NexaLink plans a Tally-ready import file. Today, export CSV.
Does NexaLink Scanner file GST returns?
No. It captures and organises purchase receipts. Returns are filed through the GST portal, your accounting software or your CA.
What does NexaLink Scanner cost in India?
Free covers 50 receipts. Pro is ₹399 a month or ₹2,999 a year and Premium ₹649 a month or ₹4,999 a year (proposed list prices).
Sources
- CBIC — CGST Act 2017, section 16 (eligibility and conditions for input tax credit) — checked on 2026-11-10
- CBIC — Tax invoice, credit and debit notes (rules summary) — checked on 2026-11-10
- CBIC — CGST Act 2017, section 36 (period of retention of accounts) — checked on 2026-11-10