Bill to ship to

[Rohit K]

A is a trader who supplies furniture, B is a factory, C is a dealer in furniture.

A asks B to supply 100 furniture to C. A sends his transportation vehicle for the said supply and B loads the furniture to deliver it to C. E-way bill raised by B for 100 Nos of Furniture.

But while transporting these 100 Nos., A decides to deliver only 50 Nos. to C and A supplies remaining 50 Nos. to his other dealers. A is paying GST on the 100 Nos but raising bills separately to C (50 Nos) and other dealers (50 nos)

In this case, is A eligible for ITC of 100 Nos. of furniture? or any other GST implications in this scenario. Please clarify

AI Summary

Input Tax Credit entitlement depends on proving genuine movement and delivery; otherwise credit may be denied by tax authorities.
Full input tax credit is available only where the transactions are genuine and the claimant can demonstrate actual movement and delivery matching invoices; contemporaneous documentary evidence such as transporter records, delivery receipts and confirmations from suppliers and end purchasers is required to defend the claim and avoid denial of credit for non genuine or inconsistent supplies.