Admissibility of ITC on Government Payments via Book Adjustment

In re Malabar Gold Private Limited (GST AAR Kerala)

Question 1. Whether net off of receivables of one GSTIN by another GSTIN of the same company or net-off of receivables with payables of supplier of goods/service would amount to payment to the vendor meeting the compliance requirements of Section 16(4) of CGST Act, 2017.

Ruling: Yes, The Applicant can pay the consideration for inward supplies by way of net off of receivables of one GSTIN by another GSTIN of the same

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