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 and SUN]

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

AI Summary

Related-party transfer treated as supply; recipient may claim input tax credit if engaged in taxable supplies.
An intra-registrant transfer of capital goods between two distinct GST registrations constitutes a supply for GST purposes and may be evidenced by a tax invoice. The receiving unit may claim input tax credit if the goods are used for making taxable supplies and statutory conditions for credit and valuation are met.