Transactions under vat

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praveen (Querist)
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05 May 2012 Client is doing brick business. So far he has not registered for VAT. Now he wants to have a deal with big construction corporates for selling bricks in bulk. Corporates are insisting for the VAT invoice.

The problem here is, while purchasing the bricks he is not getting any bill from the supplier. If that be the situation, can he raise a VAT invoice without any purchase bills for the bricks he is going to sell.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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05 May 2012 He should get registered under VAT. Even if he is not receiving any Invoice for purchases, he can still issue VAT Invoices. The purchases made by him shall be grouped under "Purchases from Un-Registered Dealers."

praveen

praveen (Querist)
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07 May 2012 Thanks for your answer. I have one more doubt. while filing return he will not be able to produce purchase invoices as he is purchasing from the unregistered delars. Will that be ok.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2025 Great question! Here’s how it works under VAT rules when you purchase from unregistered dealers:
Issuing VAT Invoice:
Once your client is registered under VAT, he must issue VAT invoices to his customers (like those big construction corporates). This is mandatory regardless of whether he has purchase invoices or not.
Purchases from Unregistered Dealers:
Since suppliers are unregistered and do not provide tax invoices, your client cannot claim input VAT credit on these purchases. These purchases are treated as "Purchases from Unregistered Dealers" and will be recorded separately in the VAT returns.
Filing Returns Without Purchase Invoices:
Yes, your client can file VAT returns without purchase invoices from unregistered dealers. He just needs to disclose these purchases properly in the returns under the correct heading (usually a separate column for purchases from unregistered dealers).
Compliance:
It’s advisable to keep proper records and evidence of purchases even if invoices are not provided — like delivery challans, payment proofs, etc., as tax authorities may ask for proof in case of audit.
In short:
Register under VAT
Issue VAT invoices to customers
Disclose purchases from unregistered dealers separately
No input tax credit on such purchases

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