ITC benefits in case of mandatory registration
A person who has applied for registration under this Act within 30 days from the date on which he becomes liable to registration and has been granted such registration shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act;
Further, the registered person shall not be entitled to take the input tax credit in respect of any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply.
It infers that
- a) he is not entitled to take the credit in respect of the capital goods.
- b) he is not entitled to take the credit in respect of any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such Supply.
- c) he is not entitled to take the credit if applies for registration post 30 days from the date on which he becomes liable to registration.
ITC benefits in case of registration on voluntary basis
A person who takes voluntary registration shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration. Further, the registered person shall not be entitled to take the input tax credit in respect of any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply.
It infers that
- a) he is not entitled to take the credit in respect of the capital goods.
- b) he is not entitled to take the credit in respect of the any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply
Applicability of E invoice in case of GTA business in case of multiple registrations
As per Notification 13/2020- CT as amended, E-Invoicing is applicable to registered persons (except a few notified persons) whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds ten crore rupees in respect of the supply of goods or services or both to a registered person. (w.e.f. 01 Oct 2022)
It may be noted that GTA is one of the exceptions on which E-invoicing is not applicable.
Therefore, in the case of Bhagirath Ltd., E-invoicing is applicable for all B2B taxable supplies of Marketing consultancy only.
Applicability of E invoice in case of multiple registrations
As per Notification 13/2020- CT (as amended), E-Invoicing is applicable to registered persons whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds ten crore rupees in respect of the supply of goods or services or both to a registered person. (w.e.f. 01 Oct 2022)
Therefore, E-invoicing is applicable for all B2B taxable supplies of all such registrations of Ranchor Pvt. Ltd.
ITC on purchase of Treadmill, Rowing machine etc for fitness of the employees
Yes, it can avail the ITC provided the eligibility conditions are satisfied. It is to be noted that ITC can not be availed in respect of membership of a club, health, and fitness centre.
ITC on Travel benefits to whole time director
The input tax credit shall not be available in respect of the expenditure of travel benefits extended to employees on vacation such as leave or home travel concession.