motilal (service) (70 Points)
01 February 2022Dear Sir,
We are registered in GST in New Delhi Region and our Courier Service provider is also Registered in New delhi Region.
When we send international courier ,our courier service provider charge IGST and Billed to us at New delhi address.
My question is- can we take Credit of IGST , which is charged on invoice which has billed in New delhi address? Our IGST is huge amount .
Kindly Guide.
Regards,
Motilal Verma
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4515 Points)
Replied 01 February 2022
This is an issue due to Section 12(8) of the IGST act. IGST charged is correct and because of this they would've chosen 'other territory' in the GSTR 1 while filing. This credit will show under 'ITC not available' in GSTR 2B as the location of the recipient (delhi) does not match the POS (other territory). This is a lacunae in the GST law, and in my view credit is fully eligible where it is used towards taxable supply.
Dept. may question credit claim in GSTR 3B as it will be appearing as ineligible in GSTR 2B. If value is high suggest to obtain written expert opinion and also intimate dept in advance to establish bonafide status.
CA Altamush Zafar
(GST Consultant)
(15935 Points)
Replied 02 February 2022
Take ii. It doesn't show in ITC not available.
It shows under ITC available and therefore there will be no issue.
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