ITC denied due to Incorrect Place of Supply

[PARTH MEHTA]

A taxpayer registered in Tamilnadu has purchased goods from Maharashtra. As per POS rules, the POS is in Tamilnadu due to goods involving movement.

However, the supplier has mistakenly mentioned POS as Madhya Pradesh. Now the Tamilnadu State Tax officer is denying to allow this ITC since Tamilnadu state has not got share of revenue from IGST charged due to POS mentioned as MP.

Taxpayer has fulfiled all the conditions of section 16 incl especially:

I. 16(2)(aa) =the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37

Since the the details are reflected in 2A and 2B

II., and most importantly 16(2)(c)=subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input tax credit admissible in respect of the said supply;

Since, supplier has filed R1 and 3B and paid tax. Only POS mistake.

Experts to please guide since his view does not appear to be supported by the law and he needs us to substantiate apart from citing of section 16.

AI Summary

Input Tax Credit denial due to incorrect place of supply is impermissible where statutory conditions and tax payment are satisfied.
Denial of Input Tax Credit solely because a supplier erroneously stated the place of supply is a procedural lapse that should not defeat ITC where the recipient meets Section 16 conditions and the tax has been paid by the supplier; remedial steps include collecting transport and delivery evidence, seeking supplier amendments, and relying on administrative clarifications and judicial precedents holding that supplier errors on POS do not extinguish recipient entitlement.