GST input on service form another state

Will answer your question with example :
When Mr A registered in state of Maharashtra visit Gujarat and stage in hotel hotel will charge CGST and SGST because of place of supply rules .
Now Mr A who is not registered in Gujarat cannot claim ITC of said CGST & SGST.
Even when Hotel by mistake levy IGST mr. A should not and cannot claim ITC of GST charged by the said hotel in Gujarat.

For more details -
CA Sachin M Jain .8O975. l5447

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Yes, the service receiver can take IGST input in this case. According to Section 7(3) of the IGST Act, the supply of services between two different states is considered as a supply in the course of inter-state trade or commerce, which in this case is evidenced by the invoice being issued with IGST. Therefore, the service receiver can take IGST input credit, as per the provisions of Section 16 of the CGST Act, 2017, subject to the conditions and restrictions specified therein.

Sir,

Thanks for the reply

In our case service provided in state 2 (no gst number in state 2) and service related to event organization in hotel.

 

 

I have a question  to Mr. Ansari.

Going by your answer to the query please clarify whether a company registered under GST in state A but having registered office in State B (does not has GST registration in state A) can get ITC in state A in the following cases:

1. When it pays GST on  some performance based services in state B
2. When it pays GST on rent for  registered office in state B. 

Thanks

PC Joshi

Correction: the place of supply rules decide this, and for many services you can't take the credit:

• For services directly related to immovable property, hotel accommodation, events, restaurant or catering, training at a location, etc., the place of supply is where the property or event is located (Sec 12(3), 12(5), 12(7) IGST). The supplier charges CGST + SGST of that State. A recipient registered only in State 1 cannot claim State 2's CGST/SGST. The ITC is lost unless you register in State 2.

• For services where the place of supply is the recipient's location (registered recipient, Sec 12(2)(a): e.g. consultancy, IT services, and most B2B services), the supplier in State 2 should charge IGST, and you can claim it in State 1.

• Sec 7(3) IGST (cited above) applies only where the supplier's location and place of supply are in different States. It doesn't convert a location-based supply into an IGST supply.

• If a supplier wrongly charged IGST on a hotel or event bill, it is their error. The tax isn't "due" as IGST, so your ITC is at risk.

• Fix: for regular out-of-State events or office needs, register in that State (or use the ISD mechanism for common services).