GST Query- INPUT

[VENKAT S]

Suppose a person who is having GST registration in Hyderabad (Telangana) purchases some goods in chennai and uses them in chennai itself. Since there is no movement of goods, the supplier charges CGST and SGST. Can the buyer who is situated in Hyderabad(Telangana) take the input credit of SGST and CGST? or Does he have to insist on receiving IGST invoice to get the credit?

[RAJA SWAMINATHAN]

As per my View the Vendor has to be registered in the State of Tamil Nadu for claiming input Credit. Since the transaction has been completed with in the state of TN IGST invoice cannot be obtained. I

[KASTURI SETHI]

I support the views of Sh.Swaminathan, Sir.

[Himansu Sekhar]

He cannot take the credit of cgst and sgst of another state. FAQ has been released in this regard.

[Chhatra Jain]

Suppose TN supplier A at the instruction of Hyderabad party supplies goods to party B in TN.In my view supplier A in TN should issues invoice in " bill to ship to" format. TN supplier A will issue bill to Hyderabad party and in the same invoice mention TN party B to whom goods were delivered as consignee and charge IGST. Again Hyderabad buyer will issue invoice on TN party B charging IGST to whom goods were delivered by A in TN . In this case IGST will be adjusted. Even though there is no inter state movement of goods but IGST is applicable in both billings. But in no case CGST and SGST of TN can not be adjusted against Telangana CGST and SGST if party A issues invoice charging CGST and SGST.

[Kishan Barai]

I support the views of Shree Chhatra Jain

Because its a "Bill to" , "Ship to" transaction & IGST has to be charged in bill by a supplier.

AI Summary

Input tax credit requires IGST invoicing for interstate credit; intrastate CGST/SGST invoices generally do not confer credit across states. If a supplier delivers and invoices goods within its own State charging CGST and SGST because there is no inter state movement, a purchaser registered in another State generally cannot claim those CGST/SGST input credits. Alternatively, parties may adopt a 'bill to/ship to' arrangement to enable invoicing with IGST so that cross State input adjustment is possible; a FAQ is cited as supporting the restriction on claiming another State's CGST/SGST.