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Input tax credit

21 July 2020

I have two questions...
1. if the party don't mention our gst no in the bill then what happens.
2. if we don't take an input tax credit in purchase invoice then what happen.

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8 Replies

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 21 July 2020

1. You are not eligible to take ITC.

2. After the due dates (ITC available date) the ITC lapsed.

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CA Mohammed Khalandar (Practicing Chartered Accountant) (203 Points)
Replied 21 July 2020

Hi.

Please look into the below profit and loss account in both the scenario :

Profit and Loss Account - GST Claimed				Profit and Loss Account - GST Not Claimed

Particulars	Amount	Particulars	Amount	Particulars	Amount	Particulars	Amount
Opening Stock	-	Sales	60,000	Opening Stock	-	Sales	60,000
Purchases	54,000	Closing Stock	-	Purchases	60,480	Closing Stock	-
Gross Profit	6,000			Gross Profit	(480)

	60,000		60,000		60,000		60,000

If you dont claim the GST Input your GST Output will increase to that extent. ( Ex : 6480 in above ) GST Payable is increased by Rs. 6,480/- if the GST input is not claimed
Income Tax will get decreased by Rs. 1,944./- when the above GST input is not claimed.

Thanks

Mohammed Khalandar

Chartered Acccountant

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SUMIT BADYAL (709 Points)
Replied 21 July 2020

Thank you @ mohammed ji

annu Goyal (1102 Points)
Replied 21 July 2020

@ Sumit Badyal
In case-1. You will not eligible to take ITC
2. If you don't take ITC you have to pay more GST, and after filling annual return ITC will be lapse, then you cannot claim
soo advisable that
1.you should say to your supplier to mention your GST no. in GSTR 1 so that you can claim ITC

2. You should claim ITC through Gstr3b

SUMIT BADYAL (709 Points)
Replied 21 July 2020

Thank you for the information...
one question, if we want to send good to distributer, who sell goods on behalf of us in commission basis, so how we send good to him without a sale invoice.

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annu Goyal (1102 Points)
Replied 21 July 2020

Yes, you can transfer goods without tax invoice, you can simply make challan for transfer the goods as Invoice should raised by distributor on name of principal when sale made by distributor

Shivam RC (Student) (23683 Points)
Replied 21 July 2020

You can send the goods to your Distributor by raising a DELIVERY CHALLAN and the same can be used to generate E-Way Bill.

Just adding few explanations to your previous query :

As per the Provision of Section 16(2) of the CGST Act 2017, ITC of Goods or Services or both can be claimed only when the following FOUR CONDITIONS are satisfied :

(a). Possession of a Tax Invoice.
(b). Received the Goods or Services or both.
(c). The Supplier must have paid the Taxes to the Government.
(d). The Recipient must have filed the Return.

One of the basic condition to avail ITC as per Section 16(2) clause (a) of the CGST Act 2017 read with Rule 36(1) of the CGST Rules 2017 is "POSSESSION OF A TAX INVOICE."

But mere having a Tax Invoice is not enough to claim ITC. It should contain all the particulars as specified in Rule 46 of the CGST Rules 2017 to claim ITC. Rule 46 contains 16 details which needs to be quoted in a Tax Invoice.

However, w.e.f. 4th September 2018, one relaxation has been given with regard to Rule 46. Even where the particulars as mandated in Rule 46 are not available, ITC may be availed based on the information contained in following fields in the tax invoice :

• Details of the Amount of Tax Charged ( CGST, SGST, IGST or Cess if applicable ),

• Descripttion of the Goods or Services ( HSN Code, SAC Code ).

• Total Value of Supply of Goods or Services or both ( Valuation to be done in accordance with the Provision of Section 15 ),

• "GSTIN" of the Supplier and Recipient should be mentioned prominently in the Tax Invoice and

• Place of Supply in case of Inter State Supply.

Since in your Tax Invoice, the Supplier failed to quote your GST Identification Number ( GSTIN ), you cannot claim ITC. It will be lapsed. It now becomes your cost.

Regards,
Shivam RC.

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