Credit of igst

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2017 Dear all,

Whether IGST receivable (in respect of goods/services received in Gujarat) can be utilized for the payment of IGST payable (in respect of Rajasthan for supply to Maharastra)?

Thanks.

CA Sukesh Bhatia

CA Sukesh Bhatia (Expert)
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21 July 2017 Yes, IGST input of one State can be utilized for IGST output of another State. Reason is that IGST is not State-Wise Tax.

However CGST and SGST input of one State cannot be utilized against CGST and SGST output of another State.

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2017 Thank you so much.
The answer is short and crisp.

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Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2017 Sir, one more question:
Company "A" provides services to company "B" (both are in Maharashtra) which is manufacturing exempt products in Maharashtra.

Now, company "A" raises invoices to another address of company "B" (another address in Gujarat) and therefore charges IGST. Compnay "B" makes taxable products in Gujarat

My question is: (1) Whether this is a correct practice? (2) Whether company "B" can take credit of this IGST (It could have not taken the credit of CGST/SGST if bill was raised in Maharashtra state itself)