EXAMPLE-108
MR.
A a manufacturer placed order to Mr. B for purchase of 1000 unit of product
“x”, which is used for further manufacturing of final Product “y” by Mr.
A. Mr. B agreed for supply of goods
but made delivery 2 lots. First lot of 500 units was supplied on
28th August and second lot of 500 units was sent on 15th September. IGST on
first 500 units of input is of Rs 10000. Mr A utilized this credit in the month
of august and balance ITC of Rs. 10000 on rest 500 units in the month of
September.
Answer
First proviso
to section 16(2) specifies that where the goods against an invoice are received in
lots or installments, the registered taxable person shall be entitled to take
credit upon receipt of the last lot or instalment.
As per Rule
55(5)
( Transportation of goods without issue of invoice) of
Chapter - VI of CGST Rules, 2017-
where the goods are being transported in semi knocked down or completely knocked
down conditions. The copy of complete invoice is issued before dispatched of the
first lot and other lots shall be sent with challan with reference of such
invoice and certified copy of the invoice and the original copy of invoice shall
be sent with the last Lot.
As per above mentioned provision Mr. A will be eligible for ITC on last
lot in the month of September for full amount of Rs 20000 as ITC.