Question 42:
1.ABC PVT limited registered in punjab purchases material from jharkhand, now
ABC PVT LTD pays freight on purchases,now what GST to deposit IGST or SGST/CGST
on reverse charge basis.
2.Material purchased on 29.12.2017 received on 05.01.2018, invoice date is
29.12.2017, now in books of accounts on which date invoice is to be entered, so
that input tax credit can be correctly claimed.
Answer:
1. Section 9(3) relating to Reverse charge provides that all the provisions
of this Act shall apply to such recipient as if he is the person liable for
paying the tax in relation to the supply of such goods or services or both.
Classification of transaction as Intra-state or Inter state depends on Location
of Supplier and Place of Supply. In this transaction Place of Supply according
to Section 12 (8) of IGST Act i.e. Place of Registered recipient i.e ABC Ltd.,
Place (Punjab) and Location of Supplier according to above specified statement
in section 9(3) is the Location of ABC Ltd.
Thus according to above provisions, you will deposit CGST and SGST on Reverse
charge Invoice.
2. According to conditions specified in Section 16(2)(b) credit on material
purchased is eligible on 05.01.2018. The same is reproduced below:-
2) Notwithstanding anything contained in this section, no registered person
shall be entitled to the credit of any input tax in respect of any supply of
goods or services or both to him unless,''
a) he is in possession of a tax invoice or debit note issued by a supplier
registered under this Act, or such other tax paying documents as may be
prescribed;
b) he has received the goods or services or both.
Explanation. 'For the purposes of this clause, it shall be deemed that the
registered person has received the goods where the goods are delivered by the
supplier to a recipient or any other person on the direction of such registered
person, whether acting as an agent or otherwise, before or during movement of
goods, either by way of transfer of documents of title to goods or otherwise;
c) 'subject to the provisions of section 41,the tax charged in respect of such
supply has been actually paid to the Government, either in cash or through
utilisation of input tax credit admissible in respect of the said supply; and
d) he has furnished the return under section 39: On the basis of above
specified provision you are eligible to take credit when you actually received
goods.
If the ITC is auto populated in your GSTR-2A or GSTR-2 for the tax period of
December on provisional basis, so our suggestion is that not to utilize the
same.
(Reply dt.14/03/2018)