ITC on Maharahstra GST

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This query is : Resolved

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This discussion clarifies whether Input Tax Credit (ITC) for GST paid on purchases in Maharashtra can be claimed when the business operates primarily from Andhra Pradesh. The consensus is that ITC can only be claimed in the state where the services are received (Andhra Pradesh), even if invoices are mistakenly raised against the Maharashtra GST number. It's advised to rectify billing errors with suppliers and consider surrendering the Maharashtra GST registration if no outward supplies are made from there. The query also touches upon handling unutilised ITC from previous financial years, suggesting it might be written off and added back to income computation.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
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17 August 2020 Respected Sir,

We have two GST Numbers one for Andhra Pradesh and the other for Maharashtra State. As there has been no sale purchase in Maharashtra for quite some time, can we claim ITC Set-off against GST paid on purchases of any product or services rendered here in Bombay.

Basically ours is an export organization based in Andhra Pradesh. Very oftenly happens that the shipping companies draw their bills inadvertently on Maharashtra GST Number which the shipping companies do not change inspite of our request. Can we not claim ITC Set-off even on such bills.

Please guide me & oblige.

With kindest regards

Lekhraj sood

Lekhraj sood (Expert)
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18 August 2020 No, you cannot claim ITC in Maharashtra because the services are received in AP.Just because the shipping company is putting wrong address in their bills , ITC cannot be taken in MH. You need to take credit in Andhra only and insist upon the shipping companies to raise bills on Andhra through a written agreement.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
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18 August 2020 Thank u sir for the best guidelines. What to do with the ITC we have taken in Fy 17-18, Fy 18-19, Fy 19-20. The said ITC is still outstanding in our books of accounts. Whether can be written off and can be added back into computation of income for the ay 20-21

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
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18 August 2020 Further hence onwards all the forthcoming GST Returns shall be filed as of NIL and the full bill value on account of any purchase/expense/service shall be debited to Trading And Profit & Loss Account. Am I correct Sir ?

Lekhraj sood

Lekhraj sood (Expert)
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18 August 2020 What is the amount of ITC lying in MH? If you are not making any outward supply from Maharashtra then you may like to surrender the registration.

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