ITC availment

[Archna Gupta]

Dear Experts

Can we avail ITC if POS is other than state where we have been registered in GST due to IGST mechanism.

Please reply.

Thanks

[Ganeshan Kalyani]

Mam, Please elaborate your query.

[Archna Gupta]

Suppose i am registered in Delhi and i have one ITC invoice in which IGST is charged by the supplier and POS is UP. Can I take ITC of that IGST?

There is no such requirement in Sec 16 and all the conditions of sec 16 such as tax invoice, receipt of goods or services etc. are fulfilled in this transaction.

[KASTURI SETHI]

There is no problem in availing ITC (IGST). You are to see whether your firm is in a position to utilise IGST Credit.

[Shilpi Jain]

Pls also have a look at the GSTR-2B.. I think this credit will be shown as ineligible.

Though there is no provision restricting this credit but logically and technically would not be available since the revenue of one State may not be available for utilisation to pay the revenue of another State.

[Shilpi Jain]

Sorry please read the last line as below

...the revenue of one State may not be available for utilisation to an assessee of another State....

[Ganeshan Kalyani]

You can claim ITC in Delhi if the supplier raised invoice on Delhi address and GSTIN.

AI Summary

Input tax credit: IGST charged on out of State supplies may be claimable if statutory credit conditions and utilisation permit. If all section 16 conditions (tax invoice, receipt of goods or services, tax paid) are met, IGST charged on a supplier invoice whose place of supply is another State does not automatically preclude claiming input tax credit; practical utilisation of IGST credit and technical reporting visibility must be assessed, and invoice particulars reflecting the recipient's registration support claimability.