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GST on Sales to Sister Concern

SamJD (Partner) (21 Points)

06 March 2022

Can GST officer disallow the ITC in case of Purchase is made from Sister concern for sales to a Govt. Client. Kindly let us know if there is any judgement in such a case.

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4 Replies

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 06 March 2022

ITC can be availed based on GSTR-2A/ 2B ..

GST officer can't disallow based on practical things which are none of his business

CA. Abhilash Krishnan P (Chartered Accountant) (529 Points)
Replied 06 March 2022

Depends from officer to officer..i have faced such a situation where gst officer was not allowing credit from a sister concern

Sudhir Kulshreshtha (Advocate) (179 Points)
Replied 07 March 2022

If You and your Sister concern have different GST numbers with same PAN then transaction between you and your sister concern will be treated as normal supply and GST will be charged these supplies.This way ITC will be claimed normally as in GSTR 2A and GSTR2B.

Imthias ahamed Kormath (910 Points)
Replied 07 March 2022

If the sister concern treated as branch or agent or principal in the same state,the stock may transfer by delivery challan,not issued an invoice.The another delaer issued an invoice to his sister concern ,he can availed ITC. ITC will b reflected in gstr 2 A & 2B of respected gstin number also.