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

XYZ Eligible for ITC on IGST Charged for Painting Contract; Consider 'Bill to Ship to' Model and Supply Rules. XYZ, based in Maharashtra, is issuing a service invoice to PQR in Gujarat for a painting contract, charging IGST. The materials for the painting are procured by XYZ from outside Maharashtra and delivered directly to the Gujarat site. The supplier charges IGST to XYZ, listing XYZ as the buyer and the Gujarat site as the delivery address. The forum discusses whether XYZ can claim Input Tax Credit (ITC) on this transaction. Responses confirm that XYZ is eligible to claim ITC, with considerations on the place of supply and the 'Bill to Ship to' business model, and suggest verifying applicable GST provisions.