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input credit of gst paid for rent of branch office

01 March 2018

we have a sale office in karnataka and we HO from Tamilnadu paying rent on behalf of sales Office to the landlord. landlord regd in blr and in the invoice it is cgst and sgst. so i think we cnnot tk this input credit in tamilnadu office.
pls confirm.

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8 Replies

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 01 March 2018

You can't claim that unless the ITC is IGST.

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ROWAN BR (108 Points)
Replied 01 March 2018

YOU CAN'T CLAIM INPUT, IF HE GIVES IGST INVOICE YOU CAN CLAIM THAT ITC

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Sreevidhya V (405 Points)
Replied 01 March 2018

thank you for the replies.... but can he give igst invoice as the place of supply is karnataka???

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 01 March 2018

place of supply is karnataka , but there is no outflow of goods or services. It takes place with in karnataka, so normally this would attract only sgst,cgst . In this case IGST can't be charged.

Sreevidhya V (405 Points)
Replied 01 March 2018

but the landlord is giving an igst invoice.... so can we take the input in tamilnadu

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VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 02 March 2018

If you have the IGST invoice , proceed with that. But in this case SGST,CGST should be there. If he gives the IGST bill you can claim the input .

Sreevidhya V (405 Points)
Replied 02 March 2018

thank you for the reply

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 02 March 2018

Input Tax Credit is available as per section 16. Mere issue of an invoice by the supplier may not be enough. ALL conditions have to be met. It is also subject to apportionment + blocked credits. Place of supply will not be determined by the invoice of the supplier- if hemakes a mistake then there could be disputes for even the receiver.

Therefore understanding the law as it stands is important. Pl refer to analysis in BGM of idtc of ICAI. idtc @ icai.in [ free]

Facility of Input service distributor is available for places where one is not registered but pays the local taxes.Restrictions on credit: