proof of receipt of service for availing ITC

[Adarsh Sharma]

As per Section 16(2) of the CGST Act, 2017, the ITC can only be availed after satisfying certain conditions specified therein. One of the condition is 'Receipt of goods or services or both'.

In case of goods, the proof of of receipt may be e-way bill, Invoice, GRN/MRN, physical stock, etc. However in case of services, except the invoice raised by the supplier, what can be the proof of receipt of services so as to comply with the condition of Section 16(2).

[KASTURI SETHI]

What is the nature of service and its SAC ?

[Padmanathan KV]

Agreed with Kasturi Sir.

Some services like Construction services, Job work, may have tangible proof. Some services will require expert certification/opinion. Documentation will be proof in case of certain services such as architectural services, software (source coding etc). Therefore, it will depend on nature of service.

[Adarsh Sharma]

Gentleman,

Construction service by the builder to Land owner in case of Joint Development.

The consideration of construction service is TDR by the Land Owner. The construction is going on but right to sale the area allotted to the Land Owner to the extent of his share is transferred to him by way of sharing agreement and even the builder raised an invoice on the Land owner for construction services.

In this scenario, what is the proof of construction services received by the Land owner from the Builder.

[Shilpi Jain]

The units alloted to Landowner which are either retained or sold to customers is the proof of receipt of the services!!

AI Summary

Debate on Proofs Required for Availing Input Tax Credit for Services Under Section 16(2) of CGST Act, 2017 A discussion on the proof of receipt required for availing Input Tax Credit (ITC) under the Goods and Services Tax (GST) regime, specifically focusing on services. Section 16(2) of the CGST Act, 2017 mandates proof of receipt for ITC eligibility. While goods have tangible proofs like e-way bills or invoices, services often lack such documentation. Participants debated suitable proofs for services, with suggestions including expert certifications and documentation for specific services. In a construction service scenario involving a builder and landowner, it was concluded that the allocation or sale of units to the landowner serves as proof of service receipt.