Master in Accounts & high court Advocate
9610 Points
Posted on 23 December 2024
ITC Availability Input Tax Credit (ITC) is available on goods transactions, including purchases from e-commerce companies, provided certain conditions are met.
Since your client is a mobile dealer purchasing mobiles through e-commerce companies, ITC can be claimed if:
- The e-commerce company is a GST-registered supplier. - A valid tax invoice or debit note is obtained. - The goods are received, and payment is made within 180 days.
However, the payment made via a third person's credit card may raise concerns. It's essential to ensure that the payment is properly documented and linked to the invoice to avoid any potential issues with ITC claims.
Legality from a GST Perspective From a legal GST perspective, the transaction seems to be a standard business-to-business (B2B) transaction.
However, the use of a third person's credit card for payment might require additional documentation to establish a clear link between the payment and the invoice.
To ensure compliance, it's recommended that your client: -
Obtains a valid tax invoice from the e-commerce company. - Maintains proper documentation of the payment made via