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TMI BlogValue and tax payment condition under provio to Section 16(2)of CGST AcTX X X X Extracts X X X X X X X X Extracts X X X X ..... Value and tax payment condition under provio to Section 16(2)of CGST AcT X X X X Extracts X X X X X X X X Extracts X X X X ..... AcT to confirm the admissibility of ITC Reply By KASTURI SETHI: The Reply: >Only debit note and credit note would not suffice. Such notes must be supported by basic docs required for availment of ITC as specified in Rule 36 of CGST Rules read with Section 34 of CGST Act. Reply By Nikhil Virkar: The Reply: >Sir, my question is regarding adjustment of payments through debit and credit notes i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstead of making payment to each other of full bills, when the recipient is wanted to adjust / recover from a specific amount against bill of vendor. Say - Supplier raised bill for Rs. value 100 + GST 18= total Rs. 118 on recipient. Recipient want to recover bank charges Rs. 10/- from the supplier out of his bill amount. Scenario 1:- If recipient deduct Rs. 10/- if pay 108/- to the supplier, wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er recipient will eligible to claim entire amount of ITC? Scenario 2 :- If recipient raised financial debit note for Rs. 10/- and make payment of Rs. 108/-, whether entire ITC is available to the recipient? Reply By KASTURI SETHI: The Reply: >In my view, such adjustments are not allowed . >(i) Read carefully 3rd proviso to Section 16 (2) below (d) which is extracted below >"Prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him [to the supplier] of the amount towards the value of supply of goods or services or both along with tax payable thereon". >(ii) Also read Section 15 (2) (c) along with meaning and scope of incidental expenses. > (iii) Bank charges are service charges and these fall in the meaning an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d scope of the term, "incidental expenses" X X X X Extracts X X X X X X X X Extracts X X X X
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