2019 (2) TMI 1082 – AUTHORITY FOR ADVANCE RULING, HARYANA – TMI – Input tax credit – when the credit will be available – time of supply vis-å-vis raising the tax invoice to actual supply of goods.
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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.
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Input tax credit – applica
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; or (b) the date on which the supplier receives the payment with respect to the supply. – AAR No. HAR/HAAR/R/2018-19/11 (In Application No.: 11/2018-19) Dated:- 30-8-2018 – SANGEETA KARMAKAR AND VIJAY KUMAR SINGH, MEMBER Present for the Applicant: Sh. K.K. Bomb and Mrs. P. Manchanda, Advocates 1. M/s. Pasco Motor LLP holding GSTN 06AAPFP2919Q1ZH (here-in-after referred to as the applicant), is into the business of retail trading of trucks and has made following submissions. 2.1. Situation One: It purchases the goods from M/S Tata Motors Ltd from different locations ie; Jamshedpur, Lucknow, Pune, etc. The goods remain in transit for roughly five to ten days. The question relates to the 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. Since the returns are to be filed on monthly basis, a practical problem is being faced by the applicant that the purchases are being booked by the purchaser in the ne
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(e) the tax payable under the provisions of sub-sections (3) and (4) of section 7 of the Union Territory Goods and Services Tax Act, but does not include the tax paid under the composition levy; INPUT TAX CREDIT 16. (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has receiv
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icant, 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. 3.2. The applicant referred to the following provisions of CGST/HGST Act, 2017. Section 2(82) – output tax in relation to a taxable person, means the tax chargeable under this Act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge basis; 3.3. The applicant submitted that in view of the above given facts read with the provisions discussed above, 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 &am
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ry for the availment of input tax credit. RECORDS OF PERSONAL HEARING – 2ND PROVISO TO SECTION 98(2) OF CGST/HGST ACT 2017 5. Personal hearing in the instant case was conducted on dt.14.08.2018 which was attended by Sh. K. K. Bomb, Advocate and Ms. P. Manchanda, Advocate. They reiterated the submissions made in their application for advance ruling. DISCUSSIONS AND FINDINGS OF THE AUTHORITY 6. As per the records of personal hearing held on 14.08.2018, the applicant has raised the following questions for determination by the authority. (i) Regarding time of receipt of goods so as to understand the time when credit shall be available. (ii) Regarding the time of supply of goods vis-å-vis raising the tax invoice to actual supply of goods. 7.1 In support of their contention, the applicant has referred to the provisions of Section 16 of the CGST/HGST Act, 2017, wherein it has been provided vide explanation to clause (b) of sub-section (2) that it shall be deemed that the registered pers
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pplicant 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 arises at the time of supply. Further, Sub-Section (2) of Section 12 provides as under: (2) The time of supply of goods shall be the earlier of the following dates, namely:- (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: 8.3. The provisions of Section 12 clearly stipulates that in case the invoice has been issued by the supplier, the date of issue of invoice is the date of supply, hence, in such cases where the goods are delivered by the applicant later on but invoice is raised earlier, the date of issue of invoice will
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