TaxTMI 
TaxTMI 
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?
ITC on painting contract
16 Apr 2021 
3 Replies 
1441 Views Asked by
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. (AI Summary)
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. (AI Summary)