Solved Queries
Q.65 In case of bill to ship to concept, we know 3 parties are involve in transaction. To maintain business secrecy original buyer does not want the ship to party know the value or from where the material is coming? Can you suggestion what is best way to generate eway bill to maintain secrecy among all three parties.
Ans. Where there are 3 parties involved and keeping in mind the secrecy of rates, any of the parties can issue E Way. The situation can be analyzed as:
In a typical “Bill To” & “Ship To” model of supply, there are three persons involved in a transaction, namely:
- “A”is the person who has ordered “B”to send goods directly to “C”.
- “B” is the person who is sending goods directly to “C”on behalf of “A”.
- “C”is the recipient of goods. In this complete scenario two supplies are involved and accordingly two tax invoices are required to be issued:
- Invoice-1– which would be issued by “B” to “A”.
- Invoice-2- which would be issued by “A”to “C”.
This issue was also clarified by the department in its press release dated 23rd April 2018, it was stated that any one can issue E way Bill either by the ultimate supplier “B” while sending goods to the customer “C” on instruction of primary supplier “A”. The possible case are stated below for understanding:
Case -1: Where e-Way Bill is generated by „B‟, the following fields shall be filled in Part A of GST FORM EWB-01:
| 1 | Bill From | In this field details of „B‟ are supposed to be filled. |
| 2 | Dispatch From | This is the place from where goods are actually dispatched. It may be the principal or additional place of business of “B” |
| 3. | Bill To | In this field details of „A‟ are supposed to be filled. |
| 4. | Ship To | In this field the address of „C‟ is supposed to be filled. |
| 5. | Invoice Details | Details of Invoice-1 are supposed to be filled |
Case -2: Where e-Way Bill is generated by “A”, the following fields shall be filled in Part A of GST FORM EWB-01:
| 1 | Bill From | In this field details of “A” are supposed to be filled. |
| 2 | Dispatch From | This is the place from where goods are actually dispatched. It may be the principal or additional place of business of “B” |
| 3. | Bill To | In this field details of “C” are supposed to be filled. |
| 4. | Ship To | In this field the address of “C” is supposed to be filled. |
| 5. | Invoice Details | Details of Invoice-2 are supposed to be filled |
It is further suggested to take a written opinion on this issue, if required for better clarity.
64 The registered person has correctly prepared and filed GSTR-1 for the tax period JULY 2021. BUT 3B WAS NOT COORECTYLY FILED. The value of outward supply and output tax stated excess by Rs. 3606187 & 180305 respectively. No any correction was made regarding this error up to march2022. not correcting this error may cause loss of Rs. 180305. Whether refund can be claimed in terms of circular no26/26/2017? if yes which form should be used for claiming refund? alternatively whether such output tax can be adjusted in 3b of tax period may 2022?
Ans. You can take the benefit of clarification given in the circular, though the circular speaks about the adjustment in the subsequent return GSTR-1 or GSTR-3B as the case may be.
Further, also GST provision provides for the rectification in reporting till the 30th September (now amended to 30th November) or annual return whichever is earlier.
Therefore, you may adjust the liability in the current financial year GSTR-3B but before the due date of adjustment and a reconciliation can be provided if sought by the department.
It is to be noted that the department may take the clarification in a stringent manner and can deny the adjustment benefit taken in the current year and not in subsequent return.
Alternatively, you can file a refund application vide RFD-01 stating the option of excess payment of tax category.
63 Is Input Tax Credit available on purchase of Transformer?
Is there any decided case law or advance ruling in the favour or against the above?
Ans. The input tax credit is available to the recipient on goods or services which are used or intended to be used in the course or furtherance of his business.
Further, the credit shall not be allowed in case it is specifically denied to be availed under Section 17(5) of the CGST Act, 2017.
Therefore in your case, apparently it seems that there is no such restriction on the availability of input tax credit on the transformer. However, for further checking we need to understand the nature of business activity where such a transformer shall be used.
