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Input tax credit of last month end purchase

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vinay

Trainee CMA

168 Points Posted on 04 April 2023

Hello

I purchased material from Delhi to Kerala. Invoice raised on 30th March but material received on April 4 th. Which date i must enter purchase. If its on receipt date, how to utilize credit appeared on 2A of last month. Please clarify

Replies (2)

Quick Summary

This discussion clarifies when to book a purchase for GST purposes when the invoice date differs from the goods receipt date. The consensus is to book the purchase and claim ITC in the month the goods are physically received, as per Section 16(2) of the GST Act. Transactions can be recorded as 'Goods in Transit' in the earlier month.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 04 April 2023

Purchase need to book in April & ITC need to be claimed in April month as the goods being received in April ( one of condition to claim ITC in Section 16(2) : goods must be received)

In March you can record such transactions in account book as " Goods in Transit "

sabyasachi mukherjee

Profession

19978 Points Posted on 04 April 2023

Accrual basis of accounting is followed. Purchase liability to be booked in Mar . Then to be reversed in April 2023. Gstr 2A input tax credit on receipt basis.