R & D unit and ITC

[Kaustubh Karandikar]

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?

AI Summary

Input tax credit eligibility affirmed for R&D units; stock transfers within same registration allowed under delivery challan.
ITC for goods and services received at an R&D unit declared as an additional place of business is eligible as R&D is in the course or furtherance of business; credits become a common pool. Stock transfers to the R&D unit within the same registration can be made under a delivery challan without GST where the business vertical concept is omitted. A different name for the R&D unit does not affect ITC eligibility when the same PAN and registration apply.