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TMI Blog2019 (2) TMI 1082X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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. Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both. Explanation.-For the purposes of this clause, 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OF THE CGST/HGST ACT,2017 4. The Deputy Excise & Taxation Commissioner (ST), Gurgaon (West), vide letter No.1917 dt.06.07.2018, submitted that there remains no doubt that input tax credit 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 sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the goods are delivered by the supplier to a recipient on the directions of such registered person. It covers the situations where the goods are supplied 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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