ITC on goods in Transit

[DK AGGARWAL]

Respected Sir/Madam

Kindly guide on the following issue

Goods dispatched on 31st of March and received in April,

1--Can we claim ITC in the month of March as per 2B

2---Or we should claim ITC as per books in the month of April, the month in which goods received. If so it would be mismatch of 2B then how to satisfy the notice from GST people.

The goods in transit can be a regular feature in many business when goods are received in next of the dispatch month.

Please explain in view of recent amendments of claiming ITC as per 2B only.

Regards

D K Aggarwal

AI Summary

Clarification on claiming Input Tax Credit: Follow Section 16(2)(b) of CGST Act, claim upon actual receipt of goods. A participant in a discussion forum raised a query about claiming Input Tax Credit (ITC) for goods dispatched in March but received in April, questioning whether to claim ITC in March as per Form 2B or in April when the goods are received. Respondents advised following Section 16(2)(b) of the CGST Act, which requires claiming ITC upon actual receipt of goods. They emphasized compliance with Section 16(2) to avoid penalties and suggested maintaining a reconciliation sheet to address any discrepancies between Form 2B and Form 3B, ensuring readiness for departmental queries.