GST ITC on AMC

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..... GST ITC on AMC
Query (Issue) Started By: - Madhavan iyengar Dated:- 2-3-2019 Last Reply Date:- 3-3-2019 Goods and Services Tax - GST
Got 8 Replies
GST
A Company has received an Invoice for AMC bill for period January 2018 to December 2018 towards maintenance services. Company has made the entire payment in the month of January 2018 Issue: Can the Company avail the entire GST-ITC as m .....

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..... entioned in the AMC in the month of January 2018. Reply By CASusheel Gupta: The Reply: Yes, can be claimed In case of goods also, we take ITC at the time of inward supply irrespective of actual date of consumption. Reply By Madhavan iyengar: The Reply: but one of the conditions to avail itc in gst law is that the company should have received the goods / services ??? Reply By KASTURI SETHI: .....

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..... The Reply: In terms of Section 16(2) of CGST Act, a registered taxable person shall not be entitled to ITC of any supply of goods or services unless he has received the goods or services or both. Unless he is in possession of a tax invoice or debit and tax has been paid. Thus in this situation as explained by the Querist ITC cannot be taken as services are not received. Advance is subject to fina .....

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..... l adjustment and provision/ completion of service. ITC is available only on receipt of inputs or services. Reply By Ganeshan Kalyani: The Reply: Practically it is very difficult to apportion the credit whenever the service in terms of AMC is received. I have inverter in my home. The technician is supposed to come quarterly to check the inverter. But the date and sometime month is also changes as .....

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..... per availability of me and sometime his. Similarly in case of yours can you maintain a log as to when he is giving service in terms of AMC. If yes take credit when service is received . otherwise it can be safely decided that credit can be taken on the receipt of invoice . Reply By CASusheel Gupta: The Reply: Suppose I purchase an AC on 31.03.2018 It am entitled to one AC (goods received), one .....

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..... year warranty (shall be availed in next year) and three free service coupon (shall be availed in next year) . How to apportion now between these three. I believe unless the stakes are high, we can take credit on receipt of invoice. At the most at year end we can reverse an estimated amount and can take re-credit in April Reply By KASTURI SETHI: The Reply: Nicely and to the point explained .....

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..... by Sh. Ganeshan Kalyani Ji. Reply By Ganeshan Kalyani: The Reply: Thanks Sri Kasturi Sir. Reply By Madhavan iyengar: The Reply: thanks susheelji kalyaniji and kasturiji for the detailed analysis.
Discussion Forum - Knowledge Sharing .....

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