2We have a requirement in D365 F&O where GST input credit needs to be eligible at the time of original purchase but blocked/ineligible at the time of inter-company stock transfer receipt, for the same consumable item.
Business scenario:
- Company has two GST registrations under one legal entity — GSTIN-A (Maharashtra) and GSTIN-B (Karnataka).
- Consumable items (e.g., pantry supplies, stationery) are procured centrally at GSTIN-A via a standard Purchase Order. CGST/SGST is charged by the vendor, and full ITC is correctly claimed at GSTIN-A.
- The same stock is later moved to GSTIN-B via a Transfer Order for consumption at that site (not for further outward taxable supply).
- Since GSTIN-A and GSTIN-B are distinct persons under GST law, the transfer order correctly triggers IGST on receipt.
- However, because the goods are consumed at GSTIN-B for employee welfare/pantry purposes (blocked under Section 17(5)(b), CGST Act), this IGST should be treated as ineligible at GSTIN-B and posted to inventory/cost — not to the recoverable GST account — while the original ITC claimed at GSTIN-A purchase must remain untouched.
Issue we are facing - Load on inventory amount are not getting calculated in stock transfer receipt tax document.
Has anyone implemented a similar ITC-ineligibility-on-transfer scenario, and if so, what configuration or customization approach did you use?
Any guidance, documentation links, or KB references would be very helpful.
Regards
Aayush Tiwari
Categories:
