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

Interstate supply under GST: IGST applies when place of supply is unit's State, enabling recipient's input tax credit.
Where a supplier delivers goods to the head office but invoices using the manufacturing unit's registration in another State, the place of supply is the unit's State and the supply is an interstate supply subject to IGST, which the manufacturing unit may claim as input tax credit. If the vendor invoices the head office instead, practical approaches are: vendor should invoice respective units; the head office may register as an Input Service Distributor to allocate credit; or inter unit taxable invoices charging IGST must be issued when goods move between HO and unit, since inter unit movement is treated as supply between distinct persons.