Filing Under B2C
This query is : Resolved
16 March 2024
Dear Experts.
Pranam.
Small doubt.
One automobile dealer, also acting as broker for insurance services - covering / sourcing insurance for new vehicles & renewal services for a OEM.
As the GST number not updated in SAP, the automobile dealer paid GST amount under B2C category.
Is it possible to claim ITC.
What is the way available to automobile dealer to ask the OEM to repay ITC.
Requesting valuable guidance please.
Thanks in advance.
Pranam.
Small doubt.
One automobile dealer, also acting as broker for insurance services - covering / sourcing insurance for new vehicles & renewal services for a OEM.
As the GST number not updated in SAP, the automobile dealer paid GST amount under B2C category.
Is it possible to claim ITC.
What is the way available to automobile dealer to ask the OEM to repay ITC.
Requesting valuable guidance please.
Thanks in advance.
13 August 2025
1️⃣ Is ITC claimable by the Automobile Dealer?
ITC is allowed only if the GST paid is on business inputs/services and the invoice is proper (contains GSTIN of both parties, etc.).
In case GST was paid under B2C, the invoice issued would typically not contain a GSTIN of the recipient (dealer) since B2C supplies don’t require buyer GSTIN.
Without GSTIN in invoice, the dealer cannot claim ITC on GST paid under B2C classification because it’s treated as a supply to unregistered person.
2️⃣ What is the correct GST treatment?
Since the dealer is acting as a broker (business entity) providing services to OEM (another registered entity), the supply should ideally be classified as B2B (Business to Business).
B2B invoices contain GSTIN of recipient (dealer), enabling ITC claim.
3️⃣ How to correct the situation?
Dealer should request OEM to update dealer’s GSTIN in their SAP system and reissue the invoice as B2B supply.
OEM can issue a Credit Note cancelling the original B2C invoice.
OEM then issues a Fresh Invoice under B2B with dealer’s GSTIN.
This way, the dealer will have proper tax invoices to claim ITC.
4️⃣ How can the dealer recover ITC amount from OEM?
Since GST was paid by the dealer but treated as B2C, technically dealer cannot claim ITC.
If dealer wants OEM to reimburse the GST amount, it becomes a commercial/contractual matter.
Dealer can:
Share proof of GST paid.
Request OEM to reimburse GST amount as per agreement.
Follow up for issuance of proper B2B invoices.
Alternatively, dealer can adjust these payments in future settlements with OEM after reconciliation.
ITC is allowed only if the GST paid is on business inputs/services and the invoice is proper (contains GSTIN of both parties, etc.).
In case GST was paid under B2C, the invoice issued would typically not contain a GSTIN of the recipient (dealer) since B2C supplies don’t require buyer GSTIN.
Without GSTIN in invoice, the dealer cannot claim ITC on GST paid under B2C classification because it’s treated as a supply to unregistered person.
2️⃣ What is the correct GST treatment?
Since the dealer is acting as a broker (business entity) providing services to OEM (another registered entity), the supply should ideally be classified as B2B (Business to Business).
B2B invoices contain GSTIN of recipient (dealer), enabling ITC claim.
3️⃣ How to correct the situation?
Dealer should request OEM to update dealer’s GSTIN in their SAP system and reissue the invoice as B2B supply.
OEM can issue a Credit Note cancelling the original B2C invoice.
OEM then issues a Fresh Invoice under B2B with dealer’s GSTIN.
This way, the dealer will have proper tax invoices to claim ITC.
4️⃣ How can the dealer recover ITC amount from OEM?
Since GST was paid by the dealer but treated as B2C, technically dealer cannot claim ITC.
If dealer wants OEM to reimburse the GST amount, it becomes a commercial/contractual matter.
Dealer can:
Share proof of GST paid.
Request OEM to reimburse GST amount as per agreement.
Follow up for issuance of proper B2B invoices.
Alternatively, dealer can adjust these payments in future settlements with OEM after reconciliation.
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