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CMA Intermediate · Direct and Indirect Taxation · Input Tax Credit

A registered person has the same PAN and State code as an Input Service Distributor and wants to transfer the credit of common input services to it. Under the CGST Rules, 2017, which statement about the invoice, credit note or debit note issued for this transfer is correct?

The document used to transfer credit to the ISD must show the GSTIN of the supplier of the common service and the original invoice number, and its taxable value must be the same as the value of the common services. The issuer must share the ISD's PAN and State code.

  1. AIt must carry the supplier's GSTIN and the original invoice number whose credit is being transferred, and its taxable value must equal the value of the common servicesCorrect
  2. BIts taxable value may be any amount agreed between the two offices
  3. CIt need not mention the original invoice number but must mention the HSN code
  4. DIt can be issued only by a person with a different PAN from the ISD

Explanation

The rule says the document must contain the GSTIN of the supplier of the common service and the original invoice number, and that the taxable value must be the same as the value of the common services. The option allowing an agreed value contradicts this. The option on different PAN is wrong because the rule applies to a person with the same PAN and State code.

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