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ITC utilisation of different branch

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Santosh Singh

56 Points Posted on 30 April 2020

I have branch in Delhi with GST registration. I have another branch in Karnataka with GST registration. Can ITC of Delhi branch be utilized for payment of GST liability of Karnataka branch? If yes then please refer the relevant provision.

Replies (3)

Quick Summary

This discussion clarifies whether Input Tax Credit (ITC) from one GST-registered branch can be used to offset the GST liability of another branch in a different state. The consensus is that this is not possible. As per GST regulations, each GSTIN is treated as a distinct legal entity, even if under the same PAN. Therefore, ITC earned by a Delhi branch cannot be used for a Karnataka branch's GST payments.

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 30 April 2020

No... A GSTIN can't avail ITC of another GSTIN. Bcoz, both are different GST numbers...

CA SANDESH MAHIPAL

Practicing in GST and MSME

1985 Points Posted on 30 April 2020

Dear Santosh Singh Ji,

As per section 25(2), a person seeking registration under CGST Act, 2017 shall be granted a single registration in a state or UT.

Further as per section 25(4), a person who has obtained or is required to obtain more than one registration in a state or in more than one states, in respect of each such registration, he shall be treated as distinct person for the purpose of this act.

In your case, you have been granted separate registrations for delhi and karnataka offices and in the eye of law, both are separate business entities. Although these are based on same PAN number but as per law these will be treated as separate.

So, it is not possible to set off one's liability with another's ITC or vice versa.

Hit like, if you are satisfied with the answer.

Regards