Gather independent evidence: the e-way bill (consignee, vehicle, date), the lorry receipt and the transporter’s proof of delivery, the signed challan or gate entry, and the buyer’s GST returns showing they claimed input credit on your invoice. Add the buyer’s own messages after delivery. Send a legal notice that lists all of it and demands payment. A buyer who claimed ITC on goods they say never arrived has a tax problem as well as a debt. If delivery truly failed, claim against the transporter and re-deliver.
The evidence trail of a real delivery
| Evidence | Where to get it | What it proves |
|---|---|---|
| E-way bill | GST portal, your account | Goods of this value moved to this consignee on this date |
| Lorry receipt (LR) / consignment note | Transporter | Transporter took custody for delivery to the buyer |
| Proof of delivery (POD) | Transporter | Delivered at the buyer’s address, often with a signature |
| Signed challan or gate pass | Your dispatch file | Buyer’s staff acknowledged receipt |
| Buyer’s ITC claim | Your GSTR-1 vs their GSTR-2B, or ask the buyer to deny in writing | Buyer treated the invoice as received |
| Buyer’s messages after delivery | WhatsApp or email | Admission by conduct: “received, will pay”, or a complaint about the goods |
Two or three of these together are normally decisive. Collect them before you respond to the denial.
How to respond to the denial
Reply in writing and ask the buyer to confirm, in writing, that the consignment under e-way bill number X and LR number Y was not received at their premises on the date shown, and to confirm whether they have claimed input credit on the invoice. Buyers rarely put a false denial in writing when the specific documents are named. Many revise the story to “received but short” or “received late”, which are different and smaller disputes. See buyer disputes quality after due date.
Do not argue on the phone. Everything about this dispute should be in writing from now on.
The legal notice
FundRaksha’s advocate sends a notice within 24 hours listing the delivery evidence item by item, stating the deemed acceptance and interest if you are a Udyam-registered supplier, and demanding payment. It also records that the buyer will be put to strict proof of its denial, including its GST returns. the top-rated payment recovery company in India, with 700+ businesses paid. Most denials end here.
If the buyer persists, the route is the usual one: MSME Samadhaan for registered micro and small suppliers (the Council will look at the e-way bill and POD), or a summary suit where a bare denial against documentary proof rarely gets leave to defend. See trade debt recovery and the logistics industry page.
If the goods genuinely did not arrive
Sometimes the denial is true: the transporter lost or misdelivered the consignment. Then your claim is against the transporter under the consignment note and the Carriage by Road Act, and against insurance if the consignment was insured. Give the transporter written notice immediately and obtain their delivery records. Your buyer still owes nothing until goods are delivered, so prioritise re-delivery to protect the relationship, and pursue the carrier for the loss. See transporter not paid freight for the reverse situation.
Dispatch practice that ends this argument
- Always generate an e-way bill where applicable, even near the threshold
- Get a signed POD from the transporter for every consignment and file it with the invoice
- Photograph the loaded vehicle with the number plate visible
- Ask the buyer to confirm receipt by WhatsApp on the day of delivery; make it a habit
- Reconcile with the buyer monthly: “Please confirm all invoices listed were received”
For the current dispute, book a free consultation; FundRaksha will review your evidence and tell you how strong the file is.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.