Legality of making a sale before purchase under gst/indian law

This discussion clarifies the legality of issuing a GST sale invoice and paying tax before receiving the actual stock. While it's permissible under GST law to raise an invoice and account for the tax liability when it arises, the buyer cannot claim Input Tax Credit (ITC) until they receive the goods. Furthermore, physically transferring inventory before it's acquired is not possible, meaning your stock cannot be negative.