9911796707
TMI BlogWrong place of supply on Invoice by SupplierX X X X Extracts X X X X X X X X Extracts X X X X ..... Wrong place of supply on Invoice by Supplier X X X X Extracts X X X X X X X X Extracts X X X X ..... e. location of recipient i.e. ABC Associates). As per IGST Act, place of supply should be Punjab i.e. location of immovable property and as such place of supply is wrong on tax invoice. However, ABC Associates has claimed ITC on such invoice. Whether said ITC claim is liable for reversal owing to incorrect place of supply on invoice? Reply By Amit Agrawal: The Reply: As legal provisions are ver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y clear with regards to place of supply in given situation, it is difficult to believe that supplier is charging IGST mentioning place of supply as Haryana (i.e. location of recipient i.e. ABC Associates) in bonafide manner (i.e. instead of CGST & SGST and place of supply as Punjab). This itself gives ample reasons for Dept. to dispute subject ITC to M/s ABC Associates in given situation & resul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tant risk of litigation. And this can become more risky for M/s ABC Associate if it is found that M/s ABC Associate is deliberate party to the act of wrong-charging of taxes by the supplier. To my mind, such situations should be avoided to the extent possible so as to avoid needless disputes, litigation and potential risks therefrom. And, legal situation & potential outcome - as I believe - ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be very different when it is case of bondafide interpretational issue w.r.t. Place of Supply as compared to some deliberate / forceful tax-structuring to suit the recipient. Moreover, answering a hypothetical situation with limited facts may not be a good idea, as in actual world, Dept. can always make case to deny ITC taken in account other surrounding circumstances (specially when law is ver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y clear w.r.t. place of supply in given case). Hence and before I delve deeper on the legal possibilities & outcome (i.e. when Dept. tries to deny such ITC in given situation), I wish to know the followings: As M/s ABC Associate is already registered under GST in Haryana and has taken a commercial premises on rent in Punjab, can you please explain factual reasons with corresponding legal provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions why M/s ABC Associate has not taken registration under GST in Punjab. I am asking for this clarity as it seems & generally speaking that M/s ABC Associate is liable to get itself registered in Punjab as well in given situation. And, I do not see why such situation & potential risks therefrom - as stated in the query - really arises. Reply By Shilpi Jain: The Reply: It is a settled princi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ple of law that the classification cannot be changed at the recipient's end. Stretching this principle the credit may not be deniable in the hands of the recipient if there is no collusion amongst them in this. However for the future transactions communicate to supplier to charge proper taxes Reply By KASTURI SETHI: The Reply: In this scenario, reversal is not required. Issue has already be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en discussed in this forum.
Reply By Rajat Gupta:
The Reply:
Question raised by Sh. Amit Aggarwal is correct. How can a firm having business in Haryana show its additional place in Punjab? The Rules clearly provide that a taxpayer can have separate place of business within state only. X X X X Extracts X X X X X X X X Extracts X X X X
|
