Friends, one very critical issue regarding input credit in GST.
I am engaged in the business of trading of mobile phones in the state of Delhi and registered in GST in same state. I personally visited mumbai (in State of Maharashtra) on 10.07.2017, buy 20 mobile phones, took delivery there at counter of supplier and came back Delhi. As I took delivery at location of supplier, and place of supply being "State of Maharashtra", supplier raised invoice as below:-
Value of mobiles (20*20000) 400000.00
CGST @ 6% 24000.00 (as it was intra-state supply being place of supply is Mumbai (State of Maharashtra)
SGST @ 6% 24000.00
Total 448000.00
NOTE: Supplier mentioned Name, Address & GSTIN of my firm registered in Delhi at my request with place of supply being Maharashtra.
I sold these mobile phone at Rs. 500000 on 13.07.2017 to a dealer in Delhi & Charged Rs. 30000.00 as CGST & Rs.30000 as SGST.
Now my question is:-
1) Am I eligible to take input tax credit of CGST of Rs.24000 & SGST of Rs.24000 paid in State of Maharashtra with claim with output tax of CGST of Rs. 30000 & SGST of Rs.30000.00 being payable in State of Delhi?
2) In his outward supply in GSTR-1 for month of july, 2017, supplier will send these details which will be my inward supply in GSTR-2. In my opinion this inward supply will be available to me for checking. I will accept this & appove. BUT What about the CGST of Rs. 24000 & SGST of Rs.24000 paid to him. He will deposit it for sure but will it reflect in my Electronic Credit ledger? If it will, will I be able to claim it or it will be ineligible credit?
IF I AM, AS A BUYER, NOT ALLOWED TO CLAIM THIS INPUT CREDIT, THIS IS GOING TO BE A NIGHTMARE FOR THE BUYERS WHO VISIT DIFFERENT STATES PERSONALLY, TAKE DELIVERY OF GOODS, COME BACK TO THEIR STATE AND SUPPLY THEM. BIG QUESTION HERE AS MAJORITY OF PROFESSIONALS OF THE VIEW THAT IN SUCH TRANSACTIONS, BUYERS OF GOODS OR SERVICES OR BOTH WILL NOT GET THE CREDITS AND IT WILL BE PART OF COST.
Need your views please.
Regards
Pradeep Goyal
CAclubindia
