Eligibility for ITC for goods at transporter warehouse

[Shrenik Bhura]

Sequence of events:
A. Goods are billed to us my manufacturer based in state A.
B. Handed over to GST registered transporter to transport to us in state B.
C. Payment is made by us before receipt of goods in almost all cases.
D. Transporter fills part B for e-waybill generation and dispatches goods from state A to state B which are more than 1000 km apart.
E. Transporter bills us for transportation on a monthly basis and we make the payment and also pay a 5% GST as RCM with our monthly 3B.
F. Goods are kept in most cases at transporters warehouse much beyond the e-waybill validity period of 15 days. We also have an insurance cover for the goods kept at the transporter warehouse.
G. Goods are shifted to our warehouses or shop on a periodic basis in the next 2-3 months and at times even 5-6 months based on demand. All our warehouses are in state B itself and have been listed in additional places of business.
H. Supplier i.e. manufacturer files GST returns in a timely manner and all invoices are showing up in the GST2A with amounts eligible for ITC.

Questions:
1. At what time in the above sequence of events are we eligible to take ITC for the goods invoiced by the manufacturer?
2. Is it okay if the goods are not 'received' by us in our warehouses or shops within the validity of the e-waybill?
3. If the answer to 1. is G, then what is the maximum period that we can stretch to avail the ITC?

[MUKUND THAKKAR]

G. Goods are shifted to our warehouses or shop on a periodic basis in the next 2-3 months and at times even 5-6 months based on demand. All our warehouses are in state B itself and have been listed in additional places of business.

Goods kept at the transporter warehouse :- if such transporter place if you had listed in additional place & additional place meet all condition as per GST rules then you are eligable to take ITC after receiving the goods at transporter place ( your additional place).

E-way Bill Validity as per my point of view will be not effected.if Bill to ship to invoice showing your additional place in invoice. other wise in future may dept may raised the objection.

[Shrenik Bhura]

Thanks for your answer Mr. Mukund.

I had read somewhere that if a GTA or the warehouse owner is registered under GST then there is no need to add their location as an additional place of business as a GTA is any ways mandated to keep complete track of movement of goods along with full consignor, consignee details. Am unable to locate that part of the act now.

Yet, we will now try to have the verbal understanding with the GTA formalised as an agreement after which we may be able to enlist their warehouse as an additional place of business with possession type as "Consent" or "Shared".

Currently e-waybills and tax invoices have only one address i.e. our primary place of business.

AI Summary

Eligibility for Input Tax Credit depends on receipt at a listed additional place of business, enabling ITC despite transporter storage. Eligibility to claim Input Tax Credit occurs when the recipient receives goods at a transporter warehouse that has been listed as an additional place of business and meets GST rule conditions; invoices appearing in GSTR 2A support ITC. Storage beyond e waybill validity does not automatically defeat ITC if the invoice shows the recipient's additional place of business, though objections may arise if the transporter location is not listed. Formalising possession arrangements with the transporter may permit listing its warehouse as an additional place and enable ITC when goods are subsequently moved to the recipient's premises.