Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

ITC related question

257 views

Save Share

Bhat Mehvish

12 Points Posted on 09 June 2020

Sir
My question is if we purchase any goods from our supplier on full discount. i didn't take itz ITC in Gstr3b Because i didn't pay any tax to my supplier..
But my supplier has taken this bill and that bills ITC is reflected in my 2A .. what can i do in this situation? plz suggest

Replies (3)

Quick Summary

If you've purchased goods with a 100% discount, you cannot claim Input Tax Credit (ITC) as no tax was paid to the supplier. Even if the invoice appears on your GSTR-2A, you should not avail the ITC. This is because Section 16(2) of the CGST Act requires possession of a tax invoice and payment of tax to be eligible for ITC.

Garima gupta

41 Points Posted on 09 June 2020

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.