Question11: 1. Goods supplied from Channai to punjab, now dealer in punjab pays freight and also GST on reverse charges basis.Please tell whether he Pays IGST or CGST and SGST.

2. Goods supplied from Channai to punjab on 28.12.2017, but received on 05.01.2018 now in which period dealer in punjab will show his invoice and takes input tax credit and how this will happens on gst portal if he dealer in punjab takes credit in JAN 2018.

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 Dealer Place (Punjab) and Location of Supplier according to above specified statement in section 9(3) is the Location of Dealer. Thus according to above discussion You will charge CGST and SGST in Reverse charge Invoice.

2. According to Section 16(2) credit 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:

 

(Reply dt.18/01/2018)