Case Law Details
Vishwanath Iron Store Vs Union of India (Patna High Court)
Introduction: A recent case at the Patna High Court revolves around an issue related to input tax credit (ITC) and the interpretation of Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), and Integrated Goods and Services Tax (IGST) in a specific transaction. The petitioner, Vishwanath Iron Store, sought a correction of an invoice to avail ITC. This article delves into the details of the case and the court’s findings.
Detailed Analysis:
1. Background of the Case: Vishwanath Iron Store, a partnership firm based in Sasaram, Bihar, operates under the goods and services tax (GST) regime and is primarily involved in buying and selling scrap materials. The firm is registered under the Bihar State Goods and Services Tax Act, 2017. Vishwanath Iron Store participated in an e-auction conducted by the East Central Railways to sell scrap and other materials. Following a successful bid, the firm received materials valued at Rs. 17 lakhs based on an invoice (Annexure-2). This invoice levied CGST and SGST at 9% each.
2. Claim for Input Tax Credit: Vishwanath Iron Store later realized that, as the goods were moved out of the state, the correct tax to be levied should have been IGST rather than CGST and SGST. As a result, the firm’s request for ITC was denied.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
