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2019 (2) TMI 1082 - AAR - GSTInput tax credit - when the credit will be available - time of supply vis-å-vis raising the tax invoice to actual supply of goods. Input tax credit - sale invoices which are raised in the end of month by the seller; but the material arrives at the end of the purchaser in the next month - applicant submitted that in the view of the given facts, co-read with the provisions discussed above, the applicant will be entitled the claim the Input Tax Credit in the same month in which the invoice is raised & tax is deemed to be paid by the supplier who has delivered the goods to the transporter for transporting the same to the recipient's destination - Held that:- In case of invoices being raised by supplier in previous month and goods being received in the succeeding month, input tax credit on goods so received shall be available to the applicant, only when applicant has received the goods. Input tax credit - applicant, in the month end; to meet the monthly sale targets (high volume) raises the invoice/s to the end customer/s, deposit the due tax on the raised invoices BUT before receiving the physical delivery of goods from its supplier since the goods are in transit (as discussed above) and makes the delivery of goods only after receiving the same in the next month - applicant submitted that the applicant will be under liability to pay the tax in the same month in which the invoice is raised and tax is collected by him even though he is not in physical possession of goods to be delivered under invoice & delivery/supply of goods is to take place at later stage to end customer - Held that:- The liability to pay tax shall arise on the basis of time of supply, which in case of supply of goods is earlier of the following dates: (a) the date of issue of invoice by the supplier or the last date on which he is required, under sub-section (1) of section 31, to issue the invoice with respect to the supply; or (b) the date on which the supplier receives the payment with respect to the supply.
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