ITC on painting contract, Goods and Services Tax - GST

[Kaustubh Karandikar]

XYZ(Maharashtra) is issuing a service invoice on PQR(Gujarat) towards painting contract undertaken at Gujarat by charging IGST. The items required for painting is procured by XYZ from outside Maharashtra and directly delivered at Gujarat site address. In the invoice the supplier is mentioning buyer as XYZ and delivery at Gujarat site address. The supplier of these items is charging IGST to XYZ(Maharashtra). Can XYZ claim ITC of the same?

Posts / Replies

[Punit Agarwal]

I believe Yes, XYZ is eligible to claim credit.

XYZ is eligible to claim ITC for the same subject to Place of Supply is in Maharastra and Delivery Address is in Gujarat.

This model of Business is called Bill to Ship to.

[ABHISHEK TRIPATHI]

Dear Sir,

You will get the ITC.

Why XYZ is raising IGST invoice on PQR? Do check whether you fall under S.12 (2)(a) or (b)(i) or b(i)(ii) and accordingly it might be IGST or CGST + SGST.

[Ganeshan Kalyani]

XYZ is eligible to take ITC of IGST charged by supplier.