Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

ITC credit in GST

Subhendu S Sanyal (B.Com(C.S.),CA FINAL ) (666 Points)

07 April 2019

A query on GST :

Party A in Delhi has shipped goods to Party B in Delhi ; Party B has sent the goods to Party C ( ultimate recipient of goods) in Jharkhand. The Invoice is Billed to JH party and CGST and SGST has been levied instead of IGST. Now will the party in JH be able to claim Input ??

Reply
Follow
Share

6 Replies

Priya Kashyap (Student) (7053 Points)
Replied 07 April 2019

no bcoz this(SGST- and IGSt) is not output tax

Upgrade to CAclubindia Pro. Subscribe Now!

Sandeep Sharma (Accounts executive) (552 Points)
Replied 07 April 2019

No, C can can't claim Itc unless IGST is charges on invoice.

Shubhada Padmawar (51 Points)
Replied 07 April 2019

Harshit Baheti (344 Points)
Replied 07 April 2019

No he cannot take itc

Ajeet Singh (Service ) (190 Points)
Replied 07 April 2019

Here what I understand your query A of Delhi placed Order to B of Delhi to Deliver goods to C of Jharkhand.

Refering to Section 10(1)(b) of IGST Act, B of Delhi issue a Tax Invoice to A of Delhi charging CGST + SGST instead of IGST as it will be treated as transfer of document.

and,

A of Delhi will issue Tax Invoice to C of Jharkhand charing IGST..C of Jharkhand be A of Delhi's Branch, Warehouse, of Agent (shall be treated as different entity to transfer credit of IGST) or independant person even.