GST Input Credit

[Ethirajan Parthasarathy]

An individual has taken two GSTIN for the sake of retaining two different Tradenames. Can he raise tax invoice for supply of some capital goods from one unit to another and whether the receiving unit can take ITC on such supply

[Rajagopalan Ranganathan]

Sir,

The answer is yes. It is permitted.

[KASTURI SETHI]

Yes because it is a supply under Section 7 of CGST Act. Such transfer is independent and fresh transaction. Hence liable to GST and ITC can be taken.

[CA HemanthKumar]

1. Yes. tax invoice can be raised for supply of capital goods being a distinct person transaction and care has to be taken on value of supply as per section 18(6) which will be higher of

a. Tax on transaction value or

b. ITC availed on capital goods less 5% per quarter.

2. Recipient unit can avail ITC only in case if they are dealing in taxable supply.

Regards

CA Hemanth Kumar

[AshaKanta Sharma]

Yes...from my view as well

[YAGAY andSUN]

For Brain Storming - Clubbing of Income whether will be applicable or not in this transaction.

AI Summary

GSTIN Units Can Issue Tax Invoices for Capital Goods; ITC Claim Valid Under Section 7 of CGST Act An individual with two GSTINs for different trade names inquired about issuing a tax invoice for capital goods supplied between these units and whether the receiving unit can claim Input Tax Credit (ITC). Respondents confirmed that this is allowed under the GST framework. Such transactions are considered independent and taxable under Section 7 of the CGST Act. The recipient can claim ITC if they engage in taxable supplies. Additionally, the transaction value must comply with Section 18(6), considering the higher of the transaction tax or adjusted ITC value. A query about income clubbing was also raised.