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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Input Tax Credit and Computation of GST Liability

Mehta Textiles Pvt Ltd, Surat, holds a valid tax invoice and has received the goods. The supplier has not furnished the invoice details in his statement of outward supplies, so they are not communicated to Mehta. Which condition of section 16(2) is not satisfied?

Clause (aa) of section 16(2) is not satisfied, because the supplier did not furnish the invoice details in the statement of outward supplies and they were not communicated to the recipient. Possession of the invoice and receipt of the goods alone do not entitle the recipient to credit.

  1. AClause (aa), that the invoice details be furnished by the supplier and communicated to the recipientCorrect
  2. BClause (b), receipt of the goods
  3. CClause (d), furnishing of the return under section 39
  4. DClause (a), possession of a tax invoice

Explanation

Mehta has the invoice (clause a) and the goods (clause b). Clause (aa) requires that the supplier has furnished the invoice details in the statement of outward supplies and that they are communicated to the recipient. That is missing here, so credit is not available. The facts do not show a failure in clause (d).

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