9911796707
TMI Blogre GST on capital goodsX X X X Extracts X X X X X X X X Extracts X X X X ..... re GST on capital goods X X X X Extracts X X X X X X X X Extracts X X X X ..... ipient has only paid the gst amount to Company A Query: whether Company B not required to reverse the ITC Reply By Praveen Maheshwari: The Reply: No Company B is not required to reverse the ITC since As per provisio to rule 37(1), the payment is deemed to have been paid. Accordingly, No reversal required. Reply By SHARAD ANADA: The Reply: Supplier and recepient is not related party hence sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h I of CGST Act is not applicable. And Provisio to rule 37 is apliapplic only for sch I cases. Provisio of rule 37 is reproduce here under Provided that the value of supplies made without consideration as specified in Schedule I of the said Act shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16: In your case invoice is made and you design tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsaction as supply with consideration but afterwards recepient fails to pay. In that case sec 16(2) Provisio 2 is applicable Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within aperiod of one hundred an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed: Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds or services or both along with tax payable thereon.
So in your case recepient is required to reverse ITC if he doesn't pay to recepient.
If supplier actually supply goods without consideration the supplier is not eligible for ITC on his input as per sec 17(5)(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; X X X X Extracts X X X X X X X X Extracts X X X X ..... ng ..... X X X X Extracts X X X X X X X X Extracts X X X X
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