gst credit eligibility

[Ramakrishnan Seshadri]

Dear experts,

We are the manufacturer of automobile parts and supplying to our OEM customer.We had doubt. We have developed a new supplier outside the state and he supplied the parts. He cleared the goods and book the consignment through transport agency . The consignment receives at the transporter godown . He stocks the consignment at transporter godown and he is delivering the goods as and when required . Our question is whether this is correct or not. The invoice date will be 2 months before but the receipt date will be today from transporter place. gst credit is eligible or not.

Please clarify how to go about it.

Thanks & Regards,

S.Ramakrishnan

[Rajagopalan Ranganathan]

Sir,

According to Section 18 (2) of CGST Act, 2017 " A registered person shall not be entitled to take input tax credit under sub-section (1) in respect of any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply. "

Therefore though the inputs are brought to your business premises even after two months from the date of invoice and the credit is taken by you within one year from the date of invoice the method followed by is legally tenable.

[DR.MARIAPPAN GOVINDARAJAN]

You are eligible to take input tax credit.

[KASTURI SETHI]

I support the views of both experts.

[Ganeshan Kalyani]

I am also of the view that GST credit is eligible.

[YAGAY andSUN]

Circular No. 61/35/2018-GST

AI Summary

Input tax credit entitlement where goods are invoiced before receipt: credit allowed if claimed within one year of invoice. Claiming input tax credit for goods invoiced earlier but received from a transporter's godown is permissible if the registrant claims the credit within one year from the date of tax invoice, and records establish the link between invoice, storage with the transporter, and eventual receipt.