Question22: My client entered into slump sale basis agreement. Now they intend to avail benefit of ITC, Is there any procedure, if so, please guide us.

Answer: We understood your question as follow Your client has procured material machine etc on slum sale basis Now he wants to avail ITC on the same The general provisions as given in section 16 of CGST act will apply like  Goods are received, possession of tax invoice etc. Please note there is no specific provision relating to  ITC for slum sale in GST The problem will arise because of section 17 of CGST Act there may be some items on which credit will not be allowed like passenger vehicles or construction material value which is added in cost of purchases and GST is charged in lump sum basis at the rate of 18%.This problem can be avoided by giving breakup value of items on which credit is not available on the invoice. In case this is not possible you have to find out some logical way to break up the value of item on which credit is not available  In absence of specified procedure in law you can take   Certificate of chartered engineer and reverse the credit on pro rata basis on the items credit of which is not allowed. In this case write a letter to GST officer informing him about the procedure adopted by you This will protect  you from any action under the category of suppuration of fact or fraud.  (Reply dt. 06/12/2017)