Dear sir,
Goods billed on 31st of the Month but received in next month, ITC reflected in 2B in the month as per date of bill. Taxable person claimed ITC as per 2B. Section 16(2) of CGST Act one of the condition is to claim ITC goods must have been received. In a given situation ITC claimed as per 2B is there any penal consequences. please advise.
Debate on Claiming ITC Under GST: Risks of Penalties for Billing Without Receipt of Goods Under Section 122(vii). A discussion on a forum revolves around the issue of claiming Input Tax Credit (ITC) under the Goods and Services Tax (GST) when goods are billed in one month but received in the next. The primary concern is whether claiming ITC based on the date of the bill, as reflected in Form 2B, without the physical receipt of goods, incurs penalties under Section 122(vii) of the CGST Act. Participants suggest that penalties could apply for procedural lapses, with some advising immediate reversal of ITC with interest. Others argue that penalties might be minor if the goods are eventually received, emphasizing compliance with Section 16(2). (AI Summary)
Goods and Services Tax - GST
TaxTMI 
TaxTMI 
TaxTMI 
