PURCHASE OF GOODS IN ONE STATE MENTIONING GST OF OTHER STATE

[RAKESH SHARMA]

SIR

IF A TAXPAYER HAS ONE GST NO AT CHANDIGARH BEING HO AND ONE FOR ITS MANUFACTURING UNIT AT OTHER STATE.

IF COMPUTERS OF HIGH VALUE ARE PURCHASED IN CHANDIGARH MENTIONING GST NO OF ITS UNIT SO THAT THE COMPUTERS SO PURCHASED ARE SENT TO THE UNIT BY THE COMPANY LATER WHEN THEIR OWN VEHICLE GOES TO THE UNIT. HERE IGST HAS BEEN CHARGED ON THE INVOICE.

IS THERE ANY ISSUE IN SUCH TRANSACTION FROM CLAIMING ITC

PLEASE ADVISE

AI Summary

Taxpayer Queries ITC Claim for High-Value Computer Purchase Across State Lines Under GST Rules A taxpayer with GST registrations in Chandigarh and another state queries about purchasing high-value computers in Chandigarh using the GST number of the out-of-state unit, with plans to transport them later. The issue concerns claiming Input Tax Credit (ITC) on such transactions. Responses suggest that IGST is applicable when goods are moved between states. If the head office (HO) in Chandigarh is involved, it should register as an input service distributor and issue taxable invoices. Alternatively, vendors should directly invoice the respective units. The transaction should be documented with appropriate invoices to ensure ITC claims.