ITC
This query is : Resolved
23 June 2017
Can a normal taxable dealer under gst get ITC against his purchase from normal resistered dealer when he sells goods to unregistered person with tax invoice? Both sale & purchase are intra state transactions. If yes then against sgst/cgst/igst? please make me clear the concept.
23 June 2017
Selling goods by the registered dealer to unregistered dealer not deny the input. anyways a registered dealer has to make the sale with charging GST with tax invoice, buyer is immaterial whether registered or unregistered, he has to discharge the GST liability accordingly he is eligible to take input also IGST/CGST/SGST
23 June 2017
Thanx. when gst is to be paid? by 20 th of the next month?
23 June 2017
which are the related documents for gst registration. proprietorship business.
23 June 2017
Yes. with in 20 days from the end of the month, Incase composite scheme within 18 days from the end of the quarter
23 June 2017
For proprietor :PAN card and ID proof of the individual & Copy of Cancelled cheque or bank statement &Declaration to comply with the provisions.
For business proof: Copy of electricity bill/landline bill, water Bill & No objection certificate of the owner & Rent agreement (in case premises are rented)
For business proof: Copy of electricity bill/landline bill, water Bill & No objection certificate of the owner & Rent agreement (in case premises are rented)
23 June 2017
can i use trade certificate for proof of place of business instead of rent agreement?
24 June 2017
any documents issued by government authority for your place of business can be used as address proof
26 June 2017
There is a column for declaration of whether ur business is in any rented place or owned place or other. if i choose 'other'
26 June 2017
In new registration under gst there is a column for declaration of whether ur business is in any rented place or owned place or other. if i choose 'other' then NOC is to be given by the landlord. pls give me a format of NOC.
27 June 2017
If a normal taxable dealer/Composite dealer purchases goods from unregistered dealer under gst, should he pay the input tax under reverse charge? if yes, then when to pay & whether ITC can be claimed against that?
27 June 2017
Incase purchase of unregistered dealer then buyer need to pay the GST under reverse charge method and the same can be taken as input once payment is made for that bill
Noc format check in files section
Noc format check in files section
27 June 2017
please clear how much a registered dealer pay as input tax on purchases from unregistered dealer with an example.
02 August 2024
Let's clarify the different aspects of GST related to ITC (Input Tax Credit), GST registration, and reverse charge mechanism:
### ITC on Purchases from Normal Registered Dealer
1. **ITC on Purchases from Registered Dealers:**
- **Eligibility:** A registered taxable dealer can claim Input Tax Credit (ITC) on purchases made from other registered dealers, even if the goods are sold to unregistered persons.
- **Documents Required:** The key documents needed to claim ITC include a valid tax invoice issued by the supplier, which must include the GSTIN of the supplier, the GSTIN of the purchaser, and the correct amount of GST charged.
- **Types of GST:** ITC can be claimed for SGST, CGST, and IGST based on the nature of the transaction:
- **Intra-State Transactions:** For intra-state transactions, ITC can be claimed on SGST and CGST.
- **Inter-State Transactions:** For inter-state transactions, ITC can be claimed on IGST.
**Example:**
- **Purchase:** You purchase goods from a registered dealer with a tax invoice showing SGST and CGST.
- **Sale:** You sell the same goods to an unregistered person with a tax invoice.
- **Claim:** You can claim ITC on the SGST and CGST paid on your purchase.
### GST Registration Documentation
For GST registration, the documents required generally include:
1. **Proof of Business Registration:**
- Trade certificate, partnership deed, or incorporation certificate (for companies).
2. **Proof of Place of Business:**
- Rent agreement (if rented), ownership documents (if owned), or a utility bill if using owned premises.
- If you are using a trade certificate, it may not be sufficient alone as proof of place of business. Typically, a rent agreement or ownership documents are preferred.
3. **Identity Proof of Proprietor/Partners/Directors:**
- PAN card, Aadhar card, passport, etc.
4. **Bank Account Statement/Cancellation Cheque:**
- To prove the business bank account.
5. **Photographs of Proprietor/Partners/Directors:**
- Recent passport-sized photographs.
### NOC from Landlord
If you are using a rented place and choose "other" in the GST registration form, you may need to provide a No Objection Certificate (NOC) from the landlord. Here is a sample format for NOC:
```plaintext
**No Objection Certificate**
Date: [Date]
To,
The GST Officer,
[Address of the GST Office]
Subject: No Objection Certificate for GST Registration
Dear Sir/Madam,
I, [Landlord's Name], the owner of the property situated at [Complete Address], hereby give my consent to [Tenant's Name], the tenant of the above-mentioned property, to use the premises for conducting his/her business operations.
I have no objection to [Tenant's Name] applying for GST registration and using the mentioned property as the business place for GST purposes.
Thank you.
Yours sincerely,
[Landlord's Name]
[Landlord's Signature]
[Landlord's Contact Details]
```
### Reverse Charge Mechanism (RCM) and ITC
1. **RCM for Purchases from Unregistered Dealers:**
- **Applicability:** Under GST, if a registered dealer purchases goods from an unregistered dealer, the registered dealer is liable to pay GST under the reverse charge mechanism (RCM).
- **Payment:** The GST under RCM needs to be paid by the registered dealer on a monthly basis while filing the GST returns.
- **ITC Claim:** The registered dealer can claim ITC on the GST paid under RCM, provided the goods are used in the course of business and all other ITC conditions are met.
**Example:**
- **Purchase:** You buy goods from an unregistered dealer for ₹10,000, and the applicable GST rate is 18%.
- **RCM:** You pay ₹1,800 (18% of ₹10,000) under RCM.
- **ITC:** You can claim ₹1,800 as ITC in your GST returns.
2. **Reverse Charge Payment Timing:**
- **Monthly Returns:** The GST paid under RCM should be declared and paid during the monthly GST returns (GSTR-3B).
### Summary
- **ITC:** Can be claimed on purchases from registered dealers, and for intra-state transactions, it can be claimed for SGST and CGST.
- **GST Registration:** Requires valid proof of business and place of business. Trade certificate alone may not suffice for proof of place of business.
- **NOC:** Required if you choose "other" for place of business in the registration form.
- **RCM:** Applicable for purchases from unregistered dealers; ITC can be claimed on GST paid under RCM.
For specific queries and advice, it’s always beneficial to consult with a GST professional or tax consultant.
### ITC on Purchases from Normal Registered Dealer
1. **ITC on Purchases from Registered Dealers:**
- **Eligibility:** A registered taxable dealer can claim Input Tax Credit (ITC) on purchases made from other registered dealers, even if the goods are sold to unregistered persons.
- **Documents Required:** The key documents needed to claim ITC include a valid tax invoice issued by the supplier, which must include the GSTIN of the supplier, the GSTIN of the purchaser, and the correct amount of GST charged.
- **Types of GST:** ITC can be claimed for SGST, CGST, and IGST based on the nature of the transaction:
- **Intra-State Transactions:** For intra-state transactions, ITC can be claimed on SGST and CGST.
- **Inter-State Transactions:** For inter-state transactions, ITC can be claimed on IGST.
**Example:**
- **Purchase:** You purchase goods from a registered dealer with a tax invoice showing SGST and CGST.
- **Sale:** You sell the same goods to an unregistered person with a tax invoice.
- **Claim:** You can claim ITC on the SGST and CGST paid on your purchase.
### GST Registration Documentation
For GST registration, the documents required generally include:
1. **Proof of Business Registration:**
- Trade certificate, partnership deed, or incorporation certificate (for companies).
2. **Proof of Place of Business:**
- Rent agreement (if rented), ownership documents (if owned), or a utility bill if using owned premises.
- If you are using a trade certificate, it may not be sufficient alone as proof of place of business. Typically, a rent agreement or ownership documents are preferred.
3. **Identity Proof of Proprietor/Partners/Directors:**
- PAN card, Aadhar card, passport, etc.
4. **Bank Account Statement/Cancellation Cheque:**
- To prove the business bank account.
5. **Photographs of Proprietor/Partners/Directors:**
- Recent passport-sized photographs.
### NOC from Landlord
If you are using a rented place and choose "other" in the GST registration form, you may need to provide a No Objection Certificate (NOC) from the landlord. Here is a sample format for NOC:
```plaintext
**No Objection Certificate**
Date: [Date]
To,
The GST Officer,
[Address of the GST Office]
Subject: No Objection Certificate for GST Registration
Dear Sir/Madam,
I, [Landlord's Name], the owner of the property situated at [Complete Address], hereby give my consent to [Tenant's Name], the tenant of the above-mentioned property, to use the premises for conducting his/her business operations.
I have no objection to [Tenant's Name] applying for GST registration and using the mentioned property as the business place for GST purposes.
Thank you.
Yours sincerely,
[Landlord's Name]
[Landlord's Signature]
[Landlord's Contact Details]
```
### Reverse Charge Mechanism (RCM) and ITC
1. **RCM for Purchases from Unregistered Dealers:**
- **Applicability:** Under GST, if a registered dealer purchases goods from an unregistered dealer, the registered dealer is liable to pay GST under the reverse charge mechanism (RCM).
- **Payment:** The GST under RCM needs to be paid by the registered dealer on a monthly basis while filing the GST returns.
- **ITC Claim:** The registered dealer can claim ITC on the GST paid under RCM, provided the goods are used in the course of business and all other ITC conditions are met.
**Example:**
- **Purchase:** You buy goods from an unregistered dealer for ₹10,000, and the applicable GST rate is 18%.
- **RCM:** You pay ₹1,800 (18% of ₹10,000) under RCM.
- **ITC:** You can claim ₹1,800 as ITC in your GST returns.
2. **Reverse Charge Payment Timing:**
- **Monthly Returns:** The GST paid under RCM should be declared and paid during the monthly GST returns (GSTR-3B).
### Summary
- **ITC:** Can be claimed on purchases from registered dealers, and for intra-state transactions, it can be claimed for SGST and CGST.
- **GST Registration:** Requires valid proof of business and place of business. Trade certificate alone may not suffice for proof of place of business.
- **NOC:** Required if you choose "other" for place of business in the registration form.
- **RCM:** Applicable for purchases from unregistered dealers; ITC can be claimed on GST paid under RCM.
For specific queries and advice, it’s always beneficial to consult with a GST professional or tax consultant.
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