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ITC on goods in transit

02 June 2020

can I claim input on invoice of 31st March in the return of March but my goods is still in transit and the supplier has already shown it in his March return.

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13 Replies

Shivam RC (Student) (23683 Points)
Replied 02 June 2020

As per the Provision of Section 16(2) of the CGST Act 2017, A Registered Person shall be entitled to take the credit of any input tax credit ( ITC ) in respect of any supply of goods or services or both to him when the following FOUR CONDITIONS are satisfied :

(i). Possession of a Tax Invoice.
(ii). "RECEIVED" the Goods or Services.
(iii). Supplier must have paid the Taxes.
(iv). He has furnished the RETURN under Section 39.

Therefore, since you have not yet received the goods ( Goods are in transit ), you cannot claim Input Tax Credit in the month of March 2020 according to the above mentioned Provision of the CGST Act 2017.

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Rohit Agarwal (64 Points)
Replied 02 June 2020

What if I have received goods in may

Shivam RC (Student) (23683 Points)
Replied 02 June 2020

Claim ITC in the month of May 2020

Rohit Agarwal (64 Points)
Replied 02 June 2020

Https://blogs.tallysolutions.com/itc-on-goods-in-transit/
see this link

Shivam RC (Student) (23683 Points)
Replied 02 June 2020

But I think this Provision has not yet been notified. The New Return System will be applicable w.e.f 01/10/2020.

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Rohit Agarwal (64 Points)
Replied 02 June 2020

Can you please tell me the notification number?

Shivam RC (Student) (23683 Points)
Replied 02 June 2020

Even I wanted to know the Notification Number regarding this change in Section 16 @ Vishesh Surana Sir

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 02 June 2020

No there is not even such proposal in budget presented on 1/2/2020 , so the question of Notification does not arise.

Rohit Agarwal (64 Points)
Replied 03 June 2020

What is the conclusion?

yash (accountant) (519 Points)
Replied 03 June 2020

Agree with Mr. shivam. ITC claimed at the time of receiving goods. and not in the month of march.and theirs no notification regarding this . the link added is just a proposal made by an individual not by any authority and it also not notified.

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Shivam RC (Student) (23683 Points)
Replied 03 June 2020

@ Rohit Sir, kindly avoid these types of links. Many famous GST Return filing websites contain wrong information. I have seen it many times. Therefore before taking the final decision from Google related links, Consult with your Tax Adviser inorder to avoid any type of litigation.

Since Mr. Vishesh Surana confirmed that it has already been notified under Section 16, I wasted my 1 hour time regarding searching it in the Google and with my Teachers. So please post comments only when you are absolutely confirm Sir.

yash (accountant) (519 Points)
Replied 03 June 2020

@ Shivam absolutely right not follow any link on google without any reference of notification &

@ Vishesh Surana its a Humble request to reply to query u are absolutely right, recently i have seen that replying in every query and you are just agreeing with previous person's answer. don't do that.

Bhavika Kothari (CA) (1258 Points)
Replied 25 July 2020

Possession of goods is one of the important condition for claiming ITC. In this case since the possession of goods is not with you, you cannot claim ITC