Payment against supplies of goods against Purchase Orders

[phaniraju konidena]

Dear Experts,

In pre-GST regime our Public Limited Company by the name say M/s.ABC Ltd, having 05 manufacturing units in different places within the said State and having different ECC Nos. on different names on the same one PAN No.

Now, in GST regime, we have registered the said company on PAN based and incorporated the FIVE manufacturing units as ‘Additional Place of Business’ under M/s.ABC Ltd., as per the statutory obligation of GST Act. Accordingly, we have issued tax invoices on the name of registered ‘Principal Place of Business’ i.e. ABC.

Earlier, prior to GST regime, we have been issued ‘Purchase Orders’ by the different customers basing on unit names and obtained dues by way of cheques on the respective unit names.

Now, the said customers are not accepting payment against supply of goods on the name of registered company as per the terms and conditions of the 'Purchase Orders', which are differed with the name and address of the supplier of the goods as per tax invoices.

Kindly advise to overcome the difficulty.

[RAMESH PRAJAPATI]

I think you should convince your customer with the help of GST Registration certificate. Name of the company is not changed. Address of all location are given in the certificate. They will be allowed to claim ITC of GST paid without any problem. You have prepared documents as per new system of GST. Customer should not hold your payment. You can ask them what change they require.

[Rajagopalan Ranganathan]

Sir,

Since you have declared the addresses of your additional place of business in the application for registration, there is no restriction for issuing invoice from your additional place of business. However GSTIN will be common for both the principal place of business and additional places of business.

[Ganeshan Kalyani]

Common input tax credit need to distributed through ISD.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of experts.

AI Summary

GST registration and invoice issuance: suppliers may issue invoices from additional places while GSTIN remains common, preserving ITC claims. GST registration on a PAN basis with declared additional places of business permits issuance of tax invoices from additional places while the GSTIN remains common. Presenting the GST registration certificate and declared addresses should allow customers to claim input tax credit, and common input tax credit may be distributed via an Input Service Distributor. The supplier should ask customers what invoicing change they require and reconcile payment terms with GST-compliant invoicing.