2026-VIL-573-KER
  1. Home
  2. 2026-VIL-573-KER

SGST High Court Cases

GST - ITC claim on Invoice Issued in the Name of Corporate Office, Claim of Input Tac Credit based on self-invoicing, Duty paying document- Petitioners’ foreign company issued invoice in the name of the its Corporate office in Delhi, however, the payment for the said invoice was discharged by the Kerala unit (Petitioner) – The petitioner issued a self-invoice in terms of Section 31(3)(f) of the CGST Act, 2017 discharged the liability under Reverse Charge mechanism, thereafter claiming input tax credit and distributing the same to its other registered units without obtaining Input Service Distributor registration - Demand under Section 74 of the CGST Act alleging wrongful availment of ITC on invoice raised in the name of the separately registered Delhi unit and distribution of ITC among other units without obtaining mandatory ISD registration - Whether the petitioner is entitled to claim input tax credit on services received from an unregistered foreign supplier when the invoice is issued in the name of another registered unit of the company, and whether distribution of such credit to other units without ISD registration is valid – HELD - The petitioner is entitled to claim ITC as the definition of "recipient" under section 2(93) of the CGST Act encompasses any person liable to pay the consideration for the supply and the petitioner having discharged the entire tax liability becomes the qualified recipient. The self-invoice issued pursuant to section 31(3)(f) read with section 9(3) of the Act constitutes a valid tax paying document under Rule 36 of the CGST Rules, 2017 on the basis of which ITC can be claimed - The petitioner being the recipient of services supplied by a foreign company (a non-registered supplier), in fulfilment of its obligations under section 9(3), raised an invoice as required under section 31 of the CGST Act r/w Rule 36 of the CGST Rules, paid the tax based on such invoice, and claimed the ITC for the tax paid, on the strength of Section 16(2)(a) of the CGST, Act. Thus, all such actions of the petitioner were based on the relevant statutory provisions and are perfectly in tune with the statutory requirements. Hence, the ITC availed by the petitioner is legally sustainable - Furthermore, the transaction is revenue neutral as the tax has been paid by the without any loss to the Government. imposition of liability on technical grounds when there is no tax evasion would be against the spirit of the Act - The impugned order is quashed to the extent it held the input tax credit ineligible and that distribution among other units was illegal, and consequently the demand and penalty imposed are declared not unsustainable – The writ petition is disposed of
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST Recent Updates: GSTAT, EWB...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?