TaxTMI 
TaxTMI 
Whether ITC is available when goods are held by supplier as bailee
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....hether ITC is available when goods are held by supplier as bailee<br> Query (Issue) Started By: - SOVIT GARG Dated:- 18-2-2020 Last Reply Date:- 24-2-2020 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>I have purchased ascertained goods from the supplier after making consideration and due to shortage of space in godown of the recipient, the supplier retains the goods as bailee. The suppli....
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....er filed its return and shown supply of the goods in his GSTR-1 and 3B. Whether the recipient is eligible for ITC without receipt of goods (where goods are held by supplier as bailee) in terms of section 16(2)(b)(i) of CGST Act? Reply By KASTURI SETHI: The Reply: In my view, ITC is allowed. The ownership the said goods is with you. The bailee is not owner of the goods. The bailee is the custodia....
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....n of the goods for the time being. He is just taking care of the goods. You are covered under the phrase, "or otherwise" for eligibility. (i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents o....
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....f title to goods or otherwise. Reply By SHARAD ANADA: The Reply: In my view you can cannot take ITC ,as Goods are not delivered by the supplier to the recepient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise. In my view here Supplier....
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.... can not be considered as any other person. Here any other person should be read as person other than supplier and recepient. Reply By KASTURI SETHI: The Reply: As per Section 2 (93) of CGST Act, 2017 "recipient" of supply of goods or services or both, means - (a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration; ....
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....(b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference....
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.... to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied;<br> Discussion Forum - Knowledge Sharing ....