Value and tax payment condition under provio to Section 16(2)of CGST AcT

[Nikhil Virkar]

Whether Adjustment thru debit and credit note i/r/o non-related party supply transaction tantamount to payment of value and tax as envisaged under proviao to section 16 (2) of CGST Act to confirm the admissibility of ITC

AI Summary

GST Forum Debates ITC Eligibility for Non-Related Party Transactions u/s 16(2) and Rule 36 of CGST Act. A discussion on the Goods and Services Tax (GST) forum addressed whether adjustments through debit and credit notes for non-related party transactions fulfill the payment conditions under Section 16(2) of the CGST Act for Input Tax Credit (ITC) eligibility. One participant argued that debit and credit notes alone are insufficient without supporting documents as per Rule 36 of the CGST Rules. Another queried about scenarios involving deductions for bank charges and whether ITC remains claimable. Opinions varied, with some asserting that such adjustments are not permissible, while others believed that if the tax is paid, ITC should be unaffected.