Question 118: In case of car dealer, he
dealer has repaired his own car standing in fixed assets and has raised bill on
itself. Thus it was booked in both expenses and sales. At the time of filling
GSTR 1, the portal denied the entry stating that GSTN of supplier and receiver
cannot be same.
Say in another cases, i am a furniture trader and want to transfer one sofa set
to my fixed assets. Here ITC on GST paid on Furniture is allowed. How will i
make the entry here also
Answer The GST is to be charged on supply. The same is defined u/s 7 of CGST
Act. It is a transaction in the course of business or furtherance of business
for consideration, may be between two different supplier or receiver or between
distinct person/ related party. In your case there is no supply because there is
no consideration and the transaction is also not covered under clause 2 of
Schedule I because it is not between related/ distinct person.
In this case tax was not payable so you should issue credit note against the
invoice. But the route of credit note is also not possible because the invoice
cannot be uploaded, so the remedy left is to cancel the invoice.
If you want to issue invoice for accounting purpose to make the accounting on
the basis of cost center then keep a separate invoice for that or pass a journal
voucher to transfer Trading stock to Fixed assets. (reply dt. 05/17/2018)