17 May 2022
A co XYZ based in Delhi imports material and goods are directly delivered to Mumbai to ABC one of its customers. In this case goods are not physically received by XYZ but directly delivered from port to ABC in mumbai. Now when XYZ filed its GSTR1 and shown sale to ABC properly. But in 2A of ABC it is written that place of supply is same so credit is not available..what does it mean? Why credit is not available to ABC for goods received from XYZ?
19 May 2022
If XYZ supplies goods, before clearance, to ABC, by endorsing Bill of Lading and ABC is paying the customs duty, filing Bill of Entry and clears goods from the port, they will have the IGST credit in their BOE which they can take. In this case XYZ will issue Bill of Supply instead of a Tax Invoice as the supply is exempted as per the Schedule III.
If XYZ clears the goods on his own account, and supplies the same to ABC, after clearance, in a Tax Invoice, they will charge IGST in the invoice, which ABC can take in their books of accounts.
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