XYZ(Mumbai) is paying GST on outward supply of goods from Mumbai to various customers. They are carrying out R & D activity from Pune for a new product which is altogether different from what is made at Mumbai unit and the said place is declared as ‘Additional Place of Business’. XYZ is claiming ITC on goods and services received at Pune. Pune being R & D unit, no outward supply and therefore no GST is paid for activities at Pune unit.
1) Can XYZ claim ITC on goods and services received at Pune unit?
2) Can XYZ stock transfer goods required for Pune unit from Mumbai unit without payment of GST under a delivery challan?
XYZ Eligible for ITC on Pune R&D Activities Despite No GST on Outward Supply; Stock Transfers Without GST Allowed XYZ, a company based in Mumbai, is paying GST on the outward supply of goods from Mumbai and conducting R&D activities in Pune, which is designated as an 'Additional Place of Business.' XYZ seeks to claim Input Tax Credit (ITC) on goods and services received in Pune, where no GST is paid due to the absence of outward supply. Experts confirm that XYZ can claim ITC for Pune's R&D activities as they are in the course of business. Initially, it was advised that stock transfers from Mumbai to Pune require GST payment, but this was corrected to allow transfers under a delivery challan without GST. The R&D unit's different name does not affect ITC eligibility as it shares the same PAN. (AI Summary)
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