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?

AI Summary

Understanding Input Credit Limits: Intra-State GST Transactions and 'Bill to Ship to' IGST Solutions A GST-related query was raised regarding input credit eligibility when goods are purchased and used within the same state, specifically from Chennai, while the buyer is registered in Hyderabad. The discussion clarified that since the transaction is intra-state, the supplier charges CGST and SGST, and the buyer cannot claim input credit for these taxes in another state. To claim IGST credit, the transaction should be structured as a 'bill to ship to' arrangement, where the supplier issues an IGST invoice to the Hyderabad buyer, even if the goods do not physically move between states.