ITC on painting contract

[Kaustubh Karandikar]

XYZ(Maharashtra) is issuing a service invoice on PQR(Gujarat) towards painting contract undertaken at Gujarat by charging IGST. The items required for painting is procured by XYZ from outside Maharashtra and directly delivered at Gujarat site address. In the invoice the supplier is mentioning buyer as XYZ and delivery at Gujarat site address. The supplier of these items is charging IGST to XYZ(Maharashtra). Can XYZ claim ITC of the same?

[Punit Agarwal]

I believe Yes, XYZ is eligible to claim credit.

XYZ is eligible to claim ITC for the same subject to Place of Supply is in Maharastra and Delivery Address is in Gujarat.

This model of Business is called Bill to Ship to.

[ABHISHEK TRIPATHI]

Dear Sir,

You will get the ITC.

Why XYZ is raising IGST invoice on PQR? Do check whether you fall under S.12 (2)(a) or (b)(i) or b(i)(ii) and accordingly it might be IGST or CGST + SGST.

[Ganeshan Kalyani]

XYZ is eligible to take ITC of IGST charged by supplier.

AI Summary

Input Tax Credit on IGST charged for goods delivered to another state may be claimable subject to place of supply.
Respondents agree that a Maharashtra recipient can claim Input Tax Credit of IGST paid on goods procured and delivered directly to a Gujarat site when the supplier has charged IGST in a bill-to-ship-to arrangement; eligibility remains subject to standard ITC conditions. The correct tax charged (IGST versus CGST+SGST) depends on the place of supply determination and must be verified against the applicable place-of-supply rules.