Gst input credit and billing (bill to ship to case)

ITC / Input 1802 views 6 replies

Tarun

Finance/Accounts/Taxation experts

28 Points Joined May 2012

Hi everybody!!!

So, this is the whole situation, please provide your appropiate comment in this concern

1) Mr. A is the supplier of some Product H having GST registered office in Delhi.

2) Mr. B is GST registered of Gujarat.

3) Mr. C is Non GST registered in Jharkhand

Mr. B wants to gift product H to Mr. C and hence, Mr. B approaches Mr. A to supply the Product H direclty to Mr. C in Jharkhand by giving Mr. A his (Mr. B) GST number of Gujarat.

Now

a) Can Mr. B take input of the invoice issued by Mr. A for product H ?

b) How and by whom eway shall be generated ?

c) Is Mr.B liable to issue bill to Mr. C for the gift made ?

d) Answer above three question if Mr. C(unregistered) resides in Delhi instead of Jharkhand ?

e) What if Mr. C is registered in Jharkhand ?

f) What if Mr C is registered in Delhi ?

Replies (6)

A- input tax credit is available only in case where the goods are used in the course of furtherance of business... Further no input tax credit is available in respect of goods which is disposed of by way of gift and therefore no itc is available.
B- eway bill can be generated by Mr A
C- No invoice is required to be issued in case of gift.
D- All above answers will remain same even if Mr C resides in delhi
E- The position of Mr c will remain same

g mahesh Mundra

Business and tax consultant

3299 Points Joined September 2017

yes Mr B can claim igst input if in the bill of a mentioned billed to Mr b and shipped to mr c and mr b also can make a bill to c for igst output

Tarun

Finance/Accounts/Taxation experts

28 Points Joined May 2012

Thank you so much Ms. Jhalak, Your reply is productive!!!!

CA Roopa Nayak

Specialized in Indirect Taxes

6831 Points Joined November 2014

Reply as under

1) Mr. A is the supplier of some Product H having GST registered office in Delhi. 2) Mr. B is GST registered of Gujarat. 3) Mr. C is Non GST registered in Jharkhand Mr. B wants to gift product H to Mr. C and hence, Mr. B approaches Mr. A to supply the Product H direclty to Mr. C in Jharkhand by giving Mr. A his (Mr. B) GST number of Gujarat.

Now a) Can Mr. B take input of the invoice issued by Mr. A for product H ? No as it is gifted by Mr. B to Mr C [ITC on goods given away as gifts is restricted under section 17(5) of GST Act]

b) How and by whom eway shall be generated ?

Eway bill shall be generated by Mr. A/Mr B who is causing movement of the goods

c) Is Mr.B liable to issue bill to Mr. C for the gift made ? Mr B and Mr C are unrelated persons. There is no supply of goods against consideration by Mr. B. Mr B is not required to issue invoice as gifts are given free without consideration

d) Answer above three question if Mr. C(unregistered) resides in Delhi instead of Jharkhand ? No change in reply

e) What if Mr. C is registered in Jharkhand ? f) What if Mr C is registered in Delhi ? No change

Read more at: https://www.caclubindia.com/forum/gst-input-credit-and-billing-bill-to-ship-to-case--496829.asp#reply

RMSD Account 1 Delhi

2 Points Joined March 2019

QUERY REGARDING ITC CLAIM

WHILE PURCHASING GOODS, INVOICE IS BILLED & SHIPPED TO TWO DIFFERENT PARTIES.
SUPPOSE, ABC PURCHASED GOODS FROM XYZ. XYZ RAISED TAX INVOICE AS BILLED TO ABC BUT SHIPPED TO PQR.

BOTH ABC & PQR HAVE DIFFERENT GSTIN NO. , SUPPOSE, ABC GSTIN IS 09AAACA1234A1Z8 & PQR GSTIN IS 09BBBCA1234B1Z8.

IN THIS CASE WHO IS ABLE TO TAKE ITC BENEFIT, ABC OR PQR.

AND IF PQR IS ABLE TO TAKE ITC BENEFIT, AS GOODS ARE RECEIVED BY PQR, THEN WHY FULL PAYMENT OF INVOICE WILL BE MADE BY ABC. BECAUSE ABC IS NOT ELIGIBLE TO TAKE ITC THEN WHY ABC SHOULD PAY WHOLE AMOUNT TO SUPPLIER,I.E,XYZ