Transactions between two firms located in same premise.

[Rajesh Kumar]

R Sir/Madam,

Please guide, if two firms are registered at the same premise. So during sale and purchase, no movement of goods required. Now Department raised objection on the said transactions and denying ITC under Section 16 as goods not received from one another.

Eway bill was generated for formality.

AI Summary

Debate on ITC Denial Under Section 16: No Goods Movement Between Firms at Same Address, E-Way Bills Unnecessary A discussion centered on the Goods and Services Tax (GST) issue involving two firms registered at the same premises, where no physical movement of goods occurred during transactions. The tax department objected, denying Input Tax Credit (ITC) under Section 16 due to the lack of goods movement. Contributors argued that the transfer of title constitutes receipt of goods, thus qualifying for ITC, and suggested that e-way bills were unnecessary. They recommended using stock records, bank transactions, invoices, and CA certificates as proof of genuine transactions, emphasizing that physical movement is not essential for ITC eligibility.