The Transfer of Credit under Rule 54(1A) of the CGST Rules to the ISD by way of issuance of Invoice or Debit/Credit Note will be considered as "Outward Taxable Supplies".
Levy of GST— Rule 54 of CGST Rules— In the instant case, applicant have operations in Andhra Pradesh & Telangana. Their head office is situated at Hyderabad, Telangana.
They have submitted that they are paying GST under Reverse Charge Mechanism (RCM) on common input services. After making such payment of GST under RCM, they are availing input credit on such input services. They submitted that the common input services are pertaining to whole company, not to any particular state. Therefore, such input credit needs to be distributed among all the states, as per Rule 39 of the CGST Rules.
Question raised before this authority is as follows—
1. Whether the Transfer of Credit under Rule 54(1A) of the CGST Rules to the ISD by way of issuance of Invoice or Debit/Credit Note will be considered as "Outward Taxable Supplies"? If yes, whether the details of Taxable Value of Input Service, and tax thereon (IGST, CGST, SGST), need to be transferred to ISD, will be shown in Point (a) of Tile 3.1 of GSTR-3B.
2. If Q No.1 is Yes, and if both the Transferor and Transferee (having same PAN) are in the same State, whether IGST will be transferred as IGST or as CGST and SGST?
3. If Q No.1 is Yes, and if both the Transferor and Transferee (having same PAN) are in different states, whether CGST and SGST will be transferred as CGST and SGST or as IGST?
4. If Q No.1 is No, then how the input credit will be transferred to ISD? Specifically, where and how to show the same in GSTR-3B and GSTR-1, so that there will be proper compliance?
Held that— In respect to question no. 1, it is held that the transfer of credit under Rule 54(1A) of the CGST Rules to the ISD by way of issuance of Invoice or Debit/Credit Note will be considered as "Outward Taxable Supplies". details of Taxable Value of Input Service, and tax thereon (IGST, CGST, SGST), need to be transferred to ISD, will be shown in Point (a) of Tile 3.1 of GSTR-3B.
In respect to question no. 2, it is held that if both the Transferor and Transferee (having same PAN) are in the same State, transfer of ITC will be in form of CGST & SGST.
The Transfer of Credit under Rule 54(1A) of the CGST Rules to the ISD by way of issuance of Invoice or Debit/Credit Note will be considered as "Outward Taxable Supplies".
Levy of GST— Rule 54 of CGST Rules— In the instant case, applicant have operations in Andhra Pradesh & Telangana. Their head office is situated at Hyderabad, Telangana.
They have submitted that they are paying GST under Reverse Charge Mechanism (RCM) on common input services. After making such payment of GST under RCM, they are availing input credit on such input services. They submitted that the common input services are pertaining to whole company, not to any particular state. Therefore, such input credit needs to be distributed among all the states, as per Rule 39 of the CGST Rules.
Question raised before this authority is as follows—
1. Whether the Transfer of Credit under Rule 54(1A) of the CGST Rules to the ISD by way of issuance of Invoice or Debit/Credit Note will be considered as "Outward Taxable Supplies"? If yes, whether the details of Taxable Value of Input Service, and tax thereon (IGST, CGST, SGST), need to be transferred to ISD, will be shown in Point (a) of Tile 3.1 of GSTR-3B.
2. If Q No.1 is Yes, and if both the Transferor and Transferee (having same PAN) are in the same State, whether IGST will be transferred as IGST or as CGST and SGST?
3. If Q No.1 is Yes, and if both the Transferor and Transferee (having same PAN) are in different states, whether CGST and SGST will be transferred as CGST and SGST or as IGST?
4. If Q No.1 is No, then how the input credit will be transferred to ISD? Specifically, where and how to show the same in GSTR-3B and GSTR-1, so that there will be proper compliance?
Held that— In respect to question no. 1, it is held that the transfer of credit under Rule 54(1A) of the CGST Rules to the ISD by way of issuance of Invoice or Debit/Credit Note will be considered as "Outward Taxable Supplies". details of Taxable Value of Input Service, and tax thereon (IGST, CGST, SGST), need to be transferred to ISD, will be shown in Point (a) of Tile 3.1 of GSTR-3B.
In respect to question no. 2, it is held that if both the Transferor and Transferee (having same PAN) are in the same State, transfer of ITC will be in form of CGST & SGST.