TMI Blog2019 (2) TMI 1082X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blem is being faced by the applicant that the purchases are being booked by the purchaser in the next month only. So in such a situation, when the applicant will be entitled to claim its Input Tax which stands charged and deemed to be paid by the seller in the previous month. It is pertinent to mention here that invoice by the seller is raised only after receiving the payment in advance. 2.2. The applicant referred to the following provisions of CGST/HGST Act, 2017. Section 2(62) - input tax in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes- (a) the integrated goods and services tax charged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it shall be deemed that the registered person has received the goods 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 of title to goods or otherwise; (c).............. (d) . 2.3. The 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 des ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it can be availed only and only on the physical receipt of the goods by the applicant. Regarding the second point, he submitted that a taxable person can create his output tax liability by charging the tax from his prospective buyers only and only if he is in the physical possession of the goods to be delivered under invoice as the law does not permit to raise invoices without passing the property, i.e., goods. Legal provisions in this regard are clear to the extent that where the goods invoiced are received in lots and instalments, the registered person shall be entitled to take credit upon the receipt of the last lot or instalment. So physical delivery/receipt of goods is mandatory for the availment of input tax credit. RECORDS OF PE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plied on Bill to - Ship to basis. In other words, the goods are supplied to some other person on the directions of the buyer of the said goods, i.e., the buyer and the recipient of goods are different. The explanation to clause (b) of sub-section (2) of Section 16 of the Acts ibid, is not applicable in the instant case, as in the instant case the buyer and recipient of goods is same, i.e, the applicant himself. Therefore, input tax credit on goods is only available when the applicant has received the goods. 8.2. As regards the second question, with regard to tax invoices issued by the applicant without having goods in possession, it is observed that as per Section 12 of the CGST/HGST Act, 2017, the liability to pay tax on goods ari ..... X X X X Extracts X X X X X X X X Extracts X X X X
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