Input Tax Credit against Stock Transfer from factory to godown

[Kaustubh Karandikar]

XYZ having manufacturing unit at Gujarat and godown in Maharashtra. When the goods are stock transferred from Gujarat to Maharashtra, GST is paid on it being distinct person concept under GST provisions and Maharashtra is taking credit of the GST charged by Gujarat. However, since both are same entity, there is no payment made by Maharashtra to Gujarat. Can the GST authorities deny the credit to Maharashtra since one of the conditions is payment to be made to the supplier within 6 months?

AI Summary

Manufacturing Entity Can Claim GST Credit on Stock Transfers Between Units in Different States Under Rule 37, Schedule I A manufacturing entity with units in Gujarat and Maharashtra queried about input tax credit eligibility on stock transfers under GST rules. The issue centered on whether Maharashtra can claim GST credit for goods transferred from Gujarat, despite no actual payment between the two locations, as they are part of the same entity. Respondents referred to Rule 37 and Schedule I of the GST Act, suggesting that such transfers are deemed paid for GST purposes through book adjustments, thus allowing Maharashtra to claim the credit. All replies agreed that the credit should not be denied.