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

Input Tax Credit timing: claim on actual receipt unless transit-sale deeming conditions permit earlier entitlement.
Entitlement to Input Tax Credit for goods dispatched before month-end but received later depends on actual receipt unless the deeming provision for transit sales applies. Credit for lots or installments is claimable on receipt of the final lot; otherwise claim when goods are received. Taxpayers must satisfy all statutory conditions before availing credit, keep monthly reconciliations between electronic purchase data and books, and retain documentation to mitigate interest and penalty exposure and to respond to departmental notices.