As per section 16(2) of the CGST Act, 2017 no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless the recipient is in possession of a tax invoice or debit note issued by a supplier or such other tax paying documents.
In the given case as the goods has been supplied on 100% discount, no tax has been paid by the buyer, therefore buyer cannot avail any ITC.
Further, even though the invoice is reflected on GSTR-2A, the recipient can keep the invoice as pending and should not avail the ITC.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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