Question ID :
41020
CAPITAL GOODS - BRANCH TRF
Respected Expert kindly guide on the following scenario-
Co is engaged in producing nil rated goods.
It is having multiple branches in 4 states.
For producing the nil rated goods it requires some machinery which is imported on maharashtra GSTIN - as per Bill of Entry in FY 2018-19.
Now in April-2021 this machinery is required at the Gujrat Branch and therefore, we need the Trf the same.
Query:
Since all the purhcases are related to nil rated production we took the ITC in 3B and reversed it in Rule 42 + 43 in FY 2018-19 and capitalized the amt.
Now in April-2021 branch trf being a outward supply for Maharashtra GSTIN - do I need to again charge GST on it?
If yes - then can I re-avail the already reversed ITC and use it against the outward supply?
If the ans is yes to above then no issues - but if Co is not eligible to re-avail the ITC then paying IGST on branch trf will only result in cascading effect.
Any solution.
Hope I am able to clear the facts. In case any additional information of facts is required - pl let me know.
Kindly help.
Thank you for your valuable time and advice.
posted by
Mitul Mahendra Mehta
on
Apr 7 2021 12:00AM