Gst input credit and billing (bill to ship to case)

Jhalak Jain (118 Points)
Replied 27 December 2018

A- input tax credit is available only in case where the goods are used in the course of furtherance of business... Further no input tax credit is available in respect of goods which is disposed of by way of gift and therefore no itc is available.
B- eway bill can be generated by Mr A
C- No invoice is required to be issued in case of gift.
D- All above answers will remain same even if Mr C resides in delhi
E- The position of Mr c will remain same

2 Like

g mahesh Mundra (Business and tax consultant) (3293 Points)
Replied 27 December 2018

yes Mr B can claim igst input if in the bill of a mentioned billed to Mr b and shipped to mr c and mr b also can make a bill to c for igst output

Tarun (Finance/Accounts/Taxation experts) (28 Points)
Replied 28 December 2018

Thank you so much Ms. Jhalak, Your reply is productive!!!!

CA Roopa Nayak (Specialized in Indirect Taxes) (6616 Points)
Replied 28 December 2018

Reply as under

1) Mr. A is the supplier of some Product H having GST registered office in Delhi. 2) Mr. B is GST registered of Gujarat. 3) Mr. C is Non GST registered in Jharkhand Mr. B wants to gift product H to Mr. C and hence, Mr. B approaches Mr. A to supply the Product H direclty to Mr. C in Jharkhand by giving Mr. A his (Mr. B) GST number of Gujarat.

Now a) Can Mr. B take input of the invoice issued by Mr. A for product H ? No as it is gifted by Mr. B to Mr C [ITC on goods given away as gifts is restricted under section 17(5) of GST Act]

b) How and by whom eway shall be generated ?

Eway bill shall be generated by Mr. A/Mr B who is causing movement of the goods

c) Is Mr.B liable to issue bill to Mr. C for the gift made ? Mr B and Mr C are unrelated persons. There is no supply of goods against consideration by Mr. B. Mr B is not required to issue invoice as gifts are given free without consideration

d) Answer above three question if Mr. C(unregistered) resides in Delhi instead of Jharkhand ? No change in reply

e) What if Mr. C is registered in Jharkhand ? f) What if Mr C is registered in Delhi ? No change

Read more at: https://www.caclubindia.com/forum/gst-input-credit-and-billing-bill-to-ship-to-case--496829.asp#reply

RMSD Account 1 Delhi (2 Points)
Replied 07 March 2019

QUERY REGARDING ITC CLAIM

WHILE PURCHASING GOODS, INVOICE IS BILLED & SHIPPED TO TWO DIFFERENT PARTIES.
SUPPOSE, ABC PURCHASED GOODS FROM XYZ. XYZ RAISED TAX INVOICE AS BILLED TO ABC BUT SHIPPED TO PQR.

BOTH ABC & PQR HAVE DIFFERENT GSTIN NO. , SUPPOSE, ABC GSTIN IS 09AAACA1234A1Z8 & PQR GSTIN IS 09BBBCA1234B1Z8.

IN THIS CASE WHO IS ABLE TO TAKE ITC BENEFIT, ABC OR PQR.

AND IF PQR IS ABLE TO TAKE ITC BENEFIT, AS GOODS ARE RECEIVED BY PQR, THEN WHY FULL PAYMENT OF INVOICE WILL BE MADE BY ABC. BECAUSE ABC IS NOT ELIGIBLE TO TAKE ITC THEN WHY ABC SHOULD PAY WHOLE AMOUNT TO SUPPLIER,I.E,XYZ