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Payment within 180 days under cgst act.

shiv shankar rawat student CMA (Manager) (263 Points)

12 September 2018

Please suggest,

What is the payment term, while we purchase/sale the material from our branch, that time amount is to be paid to our branch or not.

Subject to payment within 180 days under CGST Act.

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7 Replies

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 12 September 2018

In same company, If you are making supplies to your branch rule of 180 days not imposes.

As it's only taxable because of interstate movement.

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 12 September 2018

as per section 16(2) , If payment is not made to supplier within 180 day the recepient has to reverse the ITC claim.
BUT in case between Head off ice & Branch Office this rule is not applicabe As below :
As per Rule 37
Provided that the value of supplies made without consideration as specified in Schedule I of the said Act shall be deemed to have been paid for the purposes of the second proviso to subsection [2] of section 16.

So even though its interstate the clause of 180 day not applicable in Branch supplies

shiv shankar rawat student CMA (Manager) (263 Points)
Replied 13 September 2018

Pankaj ji, why the such concept is applicable for, when branch office incurred exp on behalf of ho, then According the transaction ISD return is filled, and in above case GSTIN no is different of both sate, transaction is going on branch to branch , both are different sigment, please suggest

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 14 September 2018

HAVE TAKEN ISD REGISTRATION,... CANNOT UNDERSTAND UR QUERY CAN ELOBRATE

shiv shankar rawat student CMA (Manager) (263 Points)
Replied 23 October 2018

Yes, In some of state, ISD Registration have taken by us ,

Further My queries is , if we are doing any transaction between SBU (INTER STATE) , then sec-16 will be apply or not.....Mean payment to be made within 180 day's or not