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TMI BlogGST CROSS CHARGE/INPUT TRANSFER QUERYX X X X Extracts X X X X X X X X Extracts X X X X ..... GST CROSS CHARGE/INPUT TRANSFER QUERY X X X X Extracts X X X X X X X X Extracts X X X X ..... IT/software export services has its Head Office (HO) in Hyderabad and a Branch Office (BO) in Bangalore. Over the years, the BO has accumulated unutilized ITC of ₹50 lakhs (FY 2018-19 to FY 2024 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -25) due to a lack of taxable outward supplies. However HO is engaged in zero-rated exports and claiming ITC refunds. Considering the GST framework: * Can the BO transfer its accumulated ITC to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... HO through cross charge? If so, how can it be structured legally? * Given the amendments effective from 01.04.2025 mandating ITC distribution only through the ISD mechanism, will the BO lose the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumulated ITC post-31.03.2025? * What is the best strategy to ensure that the company does not forfeit the accumulated ITC while remaining GST-compliant? Reply By RaamSrinivasan Kalpathi: The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : Please value the services rendered by the branch to the HO on a monthly basis and raise a proper tax invoice on the HO and remit GST (thereby set off the ITC). The HO can avail ITC and claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refund u/s.54 upon export of services. . In my considered view the company need not obtain ISD registration if the approach in para 1 is adopted. Query 3 - will not arise if the suggesti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on is adopted. X X X X Extracts X X X X X X X X Extracts X X X X
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