corrections in previous M/s B incorporation

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Onz SaM KuMaR

54 Points Joined August 2018

M/s B incorporation, Delhi received an inward supply of goods from its head office M/s B incorporation, Mumbai on 20th August 2017 valuing ₹10 lacs with an input of ₹ 180000. M/s B incorporation, Mumbai received a payment of ₹500000 from a customer to whom M/s B incorporation, Delhi had supplied the goods .There is no other transaction between the offices of M/s B incorporation during the financial year.

Q1. what is the amount of ITC available to M/s B incorporation, Delhi?

Replies (3)

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

As per Rule 37 & read with proviso of section 16(2) of CGST Act , The amount of value not paid & the amount of ITC availed of proportionate to such amount has to be reverse

So the ITC 90k has to be reverse ,hence avaliable ITC will be 90k only

Note : Reversal ITC can be avail in next month return by payment of balance amount to head office

Asiya Begum

Chartered Accountant

687 Points Joined August 2018

Please note that if the amount is outstanding for more than 180 days then only ITC is required to be reversed.

Onz SaM KuMaR

54 Points Joined August 2018

M/s sitaram trading company is engaged in the business of selling plastic granules . Being a trading company , it was registered under erstwhile VAT Act . As per VAT return filed for the period ending 30th June 2017 , the company did not carry forward any VAT input tax credit . ON 30th June 2017., the company was having a stock of 9.75 lacs . As the company was not having input credit of VAT, it did not file Trans 1. To claim the deemed credit as per Proviso to sec 140{3} of the CGST Act , it filed Trans 2 on 3rd July 2018.

Q1. is the company eligible to claim deemed credit through Trans 2 filed on 3rd July 2018?