Input Tax Credit against Stock Transfer from factory to godown, Goods and Services Tax - GST

[Kaustubh Karandikar]

XYZ having manufacturing unit at Gujarat and godown in Maharashtra. When the goods are stock transferred from Gujarat to Maharashtra, GST is paid on it being distinct person concept under GST provisions and Maharashtra is taking credit of the GST charged by Gujarat. However, since both are same entity, there is no payment made by Maharashtra to Gujarat. Can the GST authorities deny the credit to Maharashtra since one of the conditions is payment to be made to the supplier within 6 months?

Posts / Replies

[SHARAD ANADA]

Refer Rule 37. Reversal of input tax credit in the case of non-payment of consideration.-(1) 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:

[YAGAY andSUN]

Through Book adjustment it would be deemed to have paid.

[Mahadev R]

Agree with Sharad

[Ganeshan Kalyani]

It is deemed that payment is made as per GST provision.