ITC availability on URD purchase u/s 9(4)

[MANOHAR KALBURGI]

Dear Sir/Madam,

Please let us know wheather any bar is there on cliaming of ITC on account of purchase made from URD.

Eg: the rgistered person purchase the goods from URD in the month of July 2017 worth of Rs.1,000,000 with GST of 18,000. The GST payment made Rs.18,000 in july 2017 have been claimed as ITC in Agust month.

Please give us your valuable opinion in this regard.

Thank you in advance.

[AdvMurari Kumar]

If URD Means Un registered then input will not available anyhow

[AdvMurari Kumar]

As Per 9(4) it will be available under RCM payment

[Ganeshan Kalyani]

The credit of tax paid under reverse charge can be claimed in the same month also.

[Shilpi Jain]

Why is there a doubt regarding eligibility of credit. Unless it is restricted under 17(5), credit can be taken.

[KASTURI SETHI]

Sh.Manohar Kalburgi Ji,

What are the goods involved ?

[MANOHAR KALBURGI]

Goods involved are Jelly, Brick, Sand etc., the Assessee is into the business of civil works for Local Authority.

AI Summary

Input tax credit on unregistered supplier purchases available only when recipient pays tax under reverse charge mechanism. Entitlement to Input Tax Credit for purchases from an unregistered supplier depends on tax being discharged by the recipient under the reverse charge mechanism; when the recipient pays tax under reverse charge, that tax can be claimed as credit in the month of payment, provided the supplies are not subject to statutory blocks on credit.