Utilisation of input tax credit under gst

ITC / Input 183 views 6 replies

CA ANKIT MAHESHBHAI RASANIA

INTERNAL AUDITOR

31 Points Posted on 11 June 2018

Company having PAN India basis business, transfer Goods from H.O. (Gurgaon) to Mumbai Depot (Maharashtra) and then sell the same to Inter-State and Intrastate till Mar-2018 and register under GST as Regular Type. W.e.f. April-2018 Closing Stock at Mumbai Depot is NIL and Company discontinue depot sale thereafter. What Option available to Company for utilisation/transfer of Input Tax Credit available with Mumbai Depot? W.e.f. April-2018 Company also register Mumbai Depot as Input Service Distributor for sharing ITC received on Service at Mumbai Depot. Whether it is possible to transfer of ITC of Mumbai Depot under Regular type to New ISD Registration?

Please guide Option available with Mumbai Depot for use/transfer of ITC.

Replies (6)

R. B. Yadav (CMA, LLB)

Tax Consultant

593 Points Posted on 11 June 2018

No, input credit balance can't be transfer from one person to another (sperate registration is treated as a seperate person under GST).

Only the option available to transfer the credit is sale to your another unit through a tax invoice and utlise the available balance for payment of GST on this tax invoice. Your another unit will be eligible to take the input credit on the basis of tax invoice raised by mumbai depot

RAJA P M

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

128152 Points Posted on 11 June 2018

Please give some details...

(transfer Goods from H.O. (Gurgaon) to Mumbai Depot (Maharashtra))
The TRANSFER under GST...?

(W.e.f. April-2018 Closing Stock at Mumbai Depot is NIL)
The stock is nil... How..? if stock is nil then How you have excess ITC...?

g mahesh Mundra

Business and tax consultant

3299 Points Posted on 12 June 2018

yes Raja sir is correct I agree with him my question also same

Vinod Babu

24196 Points Posted on 12 June 2018

Good investigation 🔎 Raja sir.....

(W.e.f. April-2018 Closing Stock at Mumbai Depot is NIL)
The stock is nil... How..? if stock is nil then How you have excess ITC...?

CA ANKIT MAHESHBHAI RASANIA

INTERNAL AUDITOR

31 Points Posted on 14 June 2018

Q (transfer Goods from H.O. (Gurgaon) to Mumbai Depot (Maharashtra)) The TRANSFER under GST...?

Answer : Yes, (transfer Goods from H.O. (Gurgaon) to Mumbai Depot (Maharashtra)) is by raising Invoice under GST in the name of Mumbai Depot.

Q (W.e.f. April-2018 Closing Stock at Mumbai Depot is NIL) The stock is nil... How..? if stock is nil then How you have excess ITC...?
Answer : Because all stock is sold out on or berofe 31-03-2018. Excess ITC is due to variouse services utilies by Mumbai Depot. e.g. Rent, Consultancy etc.