Input tax credit
This query is : Open
05 September 2018
We are based in Gurgaon and providing erection service of Cannopy for petrol pump. We get contract from all over India. At present we are doing contract at Chennai for this we have hired big carnes and other equipments from delhi.
The delhi concern is billing us at gurgaon and charging IGST. Is there any doubt that we should not be allowed IGST. We do not have any registration at chennai.
The delhi concern is billing us at gurgaon and charging IGST. Is there any doubt that we should not be allowed IGST. We do not have any registration at chennai.
05 September 2018
You don't have a fixed establishment in Chennai, so you are not required to be registered there. Delhi supplier is correctly billing you in Gurgaon and charging IGST. You shall get credit of this. There is no doubt about this.
For your Chennai work, you shall be charging IGST as place of supply is Chennai.
For your Chennai work, you shall be charging IGST as place of supply is Chennai.
05 September 2018
You can claim IGST as ITC
06 September 2018
Sir, one of our learned speaker told that as GST is destination based tax and the state of destination is not in your RC you will not be allowed ITC. On asking from where he draw this logic he told that as the itc of Hotel is not available unless you are registered in that state same is the case here. Please clarify as i am not able to take the stand.
06 September 2018
Thanks for the question.
In case of hotels, the location of supplier and place of supply is at the same place. Say, you go to Mumbai, and stays in a hotel. Location of supplier (Hotel Owner) and place of supply remains the same- Mumbai; so he charges SGST/CGST in Maharashtra. As you are not registered in Maharashtra, you don't get this credit. Haryana cannot be expected to give you credit when the tax is collected by Maharashtra.
In your case, the service being renting of moveable property; place of supply is location of the recipient, i.e. Haryana. Thus you are getting an IGST invoice, showing place of supply as Haryana. Where are you using the goods is irrelevant in deciding place of supply.
In case of hotels, the location of supplier and place of supply is at the same place. Say, you go to Mumbai, and stays in a hotel. Location of supplier (Hotel Owner) and place of supply remains the same- Mumbai; so he charges SGST/CGST in Maharashtra. As you are not registered in Maharashtra, you don't get this credit. Haryana cannot be expected to give you credit when the tax is collected by Maharashtra.
In your case, the service being renting of moveable property; place of supply is location of the recipient, i.e. Haryana. Thus you are getting an IGST invoice, showing place of supply as Haryana. Where are you using the goods is irrelevant in deciding place of supply.
06 September 2018
Rajesh ji thanks for your prompt response
06 September 2018
Sir, to Further add to my query we have also hired at chennai Architects from delhi and in Place of Supply they have shown in 2A place of supply as Haryana and same as on invoice. However the same was done for erection work at Chennai. They should have shown it as Tamilnadu. Now I want to know can the department latter on call us and say that you have taken wrong credit as the party has given you wrong place of supply. So reverse it along with interest. What safeguard should we take or we should leave it as it is.
07 September 2018
True, place of supply of Architectural Services is Chennai [Section 12(3)(a) of the IGST Act]. They have incorrectly issued invoice showing place of supply at Haryana.
When something is wrong, department can always raise questions later. However, your liability is not there as there is self-assessment in GST, and a supplier has right to assess GST liability- rightly or wrongly; and as recipient you have no right to challenge the GST assessment made by your supplier.
When something is wrong, department can always raise questions later. However, your liability is not there as there is self-assessment in GST, and a supplier has right to assess GST liability- rightly or wrongly; and as recipient you have no right to challenge the GST assessment made by your supplier.
07 September 2018
Sir, I am getting little bit confused Sec 10 and 12 of IGST Act help us to decide whether we have to charge IGST or CGST and SGST on sale transaction. And Chapter V of CGST Act tells us of input tax credit availment condition on our expenditure. So Will there be any problem in taking ITC of Cranes used at our chennai project as the supplier is using Service Code 997313. If the itc is to be disallowed how this logic is drawn.
08 September 2018
Wating for your reply
09 September 2018
GST on Sale Transaction- Supplier (you) is located in Gurgaon. Place of supply (erection of canopy) is Chennai. You shall be charging and paying IGST.
You shall be eligible for ITC paid in inputs. I see no doubt.
You shall be eligible for ITC paid in inputs. I see no doubt.
09 September 2018
Sir I want to know for input services e.g artichect service will I be allowed the credit of igst
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