QUESTION

A` is manufacturer of biscuits & registered under GST. Apart from its own manufacturing facility, `A` hires premises of several manufacturers of biscuits (Say B, C, D ..........), obtains separate GST Registration Certificates for the same and manufactures biscuits on its own account. `A`, `B`, `C`, `D` etc. receive various inputs from various registered suppliers, takes ITC and uses the same for payment of GST on biscuits. In one instance, GST registered input supplier `X` dispatched the inputs to `B` under the cover of proper GST invoice and e-way bill, but the transporter delivered the inputs to `C`. PIN and GSTIN of `B` and `C` are different. The staff of `C` received the inputs but later on `C` found that the inputs were meant for `B` as the GSTIN of `B` was mentioned on the accompanying invoice & the e-way Bill. ITC of the invoice was not taken by `B` as the inputs had not been received by `B`. This mistake was reported by `B`/ `C` to the supplier `X` after about two months. The supplier's goods( inputs) are now lying with `C` for the last about two months. Please examine the issue and suggest how to move the goods from `C` to `B`.

ANSWER
There may be two situations:

1.If inputs are usable by C, then supplier is required to cancel the original invoice by issuing credit note and issue fresh invoice in favor of C. But in this case interest liability will arise as the goods are already sent and invoice is issued late resulting in late payment of tax.

Alternatively to avoid interest liability, the supplier can make amendment in GSTR-1 by editing GSTIN number of C instead of B so that it will reflect in GSTR-2A of C.

2. If inputs are not usable by C, then C will deliver the inputs to B on challan.