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How to transfer itc from one state to another state by one person having two different gstins

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tejaswi nooli

54 Points Posted on 15 July 2020

a contractor purchase a tipper in A.P. but all his works are done in Telangana .how to transfer itc on tipper purchased in AP to Telangana

Replies (2)

Quick Summary

This discussion explains how a contractor with GST registrations in Andhra Pradesh (AP) and Telangana can transfer Input Tax Credit (ITC) for a tipper. If the tipper is purchased in AP and used in Telangana, it can be treated as an outward supply in AP and a purchase in Telangana to facilitate ITC transfer. Alternatively, movement of the vehicle can be managed using a Delivery Challan (DC) and E-Way Bill (EWB) without an invoice, with 'bill to ship to' options ensuring credit reaches the correct state.

Sahil Jain (FAFD, DISA, CA)

Practicing Chartered Accountant

1307 Points Posted on 16 July 2020

Assuming your contractor is having GST registered in both state A.P. and Telangana

Since he will have to send tipper from A.P. to Telangana, he will have to show outward supply (sale) in A.P. state and purchase in Telangana state and then he can claim ITC in Telangana.

If tipper is directly supplied to Telangana, then contractor should have provided Telangana GST and supplier should have charges IGST, in such case there would have been no question of ITC transfer.

To best of my knowledge, it should be shown as sale and purchase in respective state and ITC shall be transferred

CA Akshay Hiregange

Partner - Audit & Assistance

3708 Points Posted on 16 July 2020

Do not agree with Mr. Sahil here.

There is no issues in ITC being claimed in A.P. Circular 21/2017 provides that movement of tipper like vehicles can be sent under DC + EWB without raising invoices. Upon purchase bill to ship to can be used to ensure credit moves to the correct State.