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ITC on goods in transit
can I claim input on invoice of 31st March in the return of March but my goods is still in transit and the supplier has already shown it in his March return.
Replies (13)
Quick Summary
As per the Provision of Section 16(2) of the CGST Act 2017, A Registered Person shall be entitled to take the credit of any input tax credit ( ITC ) in respect of any supply of goods or services or both to him when the following FOUR CONDITIONS are satisfied :
(i). Possession of a Tax Invoice.
(ii). "RECEIVED" the Goods or Services.
(iii). Supplier must have paid the Taxes.
(iv). He has furnished the RETURN under Section 39.
Therefore, since you have not yet received the goods ( Goods are in transit ), you cannot claim Input Tax Credit in the month of March 2020 according to the above mentioned Provision of the CGST Act 2017.
(i). Possession of a Tax Invoice.
(ii). "RECEIVED" the Goods or Services.
(iii). Supplier must have paid the Taxes.
(iv). He has furnished the RETURN under Section 39.
Therefore, since you have not yet received the goods ( Goods are in transit ), you cannot claim Input Tax Credit in the month of March 2020 according to the above mentioned Provision of the CGST Act 2017.
What if I have received goods in may
Claim ITC in the month of May 2020
Https://blogs.tallysolutions.com/itc-on-goods-in-transit/
see this link
see this link
But I think this Provision has not yet been notified. The New Return System will be applicable w.e.f 01/10/2020.
Can you please tell me the notification number?
Even I wanted to know the Notification Number regarding this change in Section 16 @ Vishesh Surana Sir
No there is not even such proposal in budget presented on 1/2/2020 , so the question of Notification does not arise.
What is the conclusion?
Agree with Mr. shivam. ITC claimed at the time of receiving goods. and not in the month of march.and theirs no notification regarding this .
the link added is just a proposal made by an individual not by any authority and it also not notified.
@ Rohit Sir, kindly avoid these types of links. Many famous GST Return filing websites contain wrong information. I have seen it many times. Therefore before taking the final decision from Google related links, Consult with your Tax Adviser inorder to avoid any type of litigation.
Since Mr. Vishesh Surana confirmed that it has already been notified under Section 16, I wasted my 1 hour time regarding searching it in the Google and with my Teachers. So please post comments only when you are absolutely confirm Sir.
Since Mr. Vishesh Surana confirmed that it has already been notified under Section 16, I wasted my 1 hour time regarding searching it in the Google and with my Teachers. So please post comments only when you are absolutely confirm Sir.
@ Shivam absolutely right not follow any link on google without any reference of notification &
@ Vishesh Surana its a Humble request to reply to query u are absolutely right, recently i have seen that replying in every query and you are just agreeing with previous person's answer. don't do that.
Possession of goods is one of the important condition for claiming ITC. In this case since the possession of goods is not with you, you cannot claim ITC
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