Invoice matching in GST :
In Mahalakshmi Cotton Ginning Pressing and Oil Industries v. State of Maharashtra (2012) 35 STT 589 = 21 528 = 51 VST 1 (Bom HC DB), the Maharashtra Vat Act provided that set off (input tax credit) will not be available if selling dealer had not paid the tax. This provision has been held as valid.This principle has been incorporated in CGST Act.
In GST, invoices of supplier and recipient will be matched through computer network. The recipient can avail input tax credit only if supplier has actually paid tax.