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Example 1

Suppose Company Entered into a Contact for purchasing goods from A Ltd on 10 May for Rs 100000+18% GST.

Payment for the same made on 10 May

Goods along Invoice Received on 17 May but received in factory on 18 May

On what date is Input Available?

-a-

Input is available on 18 May i.e Date of Receipt of Goods

-ea-

 

Example 2

Goods Sold by A to B on 15 May from shop.

Invoice issued on that date.

B took the goods to his factory on 16 May

Payment Made on 17 May

On what date is Input Available?

-a-

Input is available on 15 May i.e Date of Receipt of Goods

In this goods are received at the shop itself and not at factory

-ea-

Example 3

Suppose Mr X has a shop in Delhi

He gets order from his customer Y in Bangalore

Y asks to not send goods to him to Bangalore but deliver it Directly to his customer Z in Gurgaon

In this case,Y has not received goods

Can Y take input of Goods Purchased from X

-a-

Yes

Even if goods sent on behalf of buyer to third person, still it t shall be deemed that the registered person has received the goods

As per Section 16 OF CGST,

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

-ea-

  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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