When we mention CGST, the same is regulated by CGST Act and thus, it is a unified code throughout India. However, when we mention SGST, the same is a state specific and differs from state to state. Accordingly, while CGST of Karnataka can be claimed in Maharashtra, the SGST of Karnataka cannot be claimed in Maharashtra. Thus, ITC of CGST should be available to the recipient, while that of SGST will not be. It is important to note that there is nothing in the Act or Rules which restricts ITC where there is a difference in place of supply and location of recipient. The understanding is fortified by Circular No. 184/16/2022-GST which clarifies in Q3 as under:
“Section 16 of the CGST Act lays down the eligibility and conditions for taking input tax credit whereas, section 17 of the CGST Act provides for apportionment of credit and blocked credits under circumstances specified therein. The said provisions of law do not restrict availment of input tax credit by the recipient located in India if the place of supply of the said input service is outside India. Thus, the recipient of service of transportation of goods shall be eligible to avail input tax credit in respect of the IGST so charged by the supplier, subject to the fulfilment of other conditions laid down in section 16 and 17 of the CGST Act.”