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2022-TIOL-147-AAR-GST
IVL India Environmental R And D Pvt Ltd
GST - Since support services are being supplied by IVL Sweden, located in a non-taxable territory to the applicant, the whole of integrated tax leviable under section 5 of the Integrated Goods and Services Tax Act, shall be paid on reverse charge basis by the recipient of such services i.e. the applicant - Thus the applicant has to pay GST on the money proceeds which is being transferred to IVL Sweden: AAR
- Application disposed of: AAR
2022-TIOL-146-AAR-GST
Konkan Railway Corporation Ltd
GST - Issue arises is as to whether the Applicant is required to be registered under Odisha Goods and Services Act, 2017 and Central Goods and Services Tax Act, 2017 for rendering works contract service by way of executing Construction of Major bridges, ROBs, Supply of Vehicle, Site facilities & other allied works to M/s East Coast Railway, Odisha - Applicant is required to maintain suitable structures in terms of human and technical resources with sufficient degree of permanence at the sites of East Coast Railway, Odisha to effect supply of desired services as per terms and conditions of work order - It has to ensure provision of works contract service for contract period, indicating sufficient degree of permanence to human and technical resources employed at the sites - The Applicant through its expert belonging, therefore, is to supply the services at the site from establishment as defined under section 2 (7) of IGST Act - The location of supplier should, therefore, be in Odisha in terms of section 2 (15) of the IGST Act - Accordingly, Applicant is required to be registered under Odisha Goods and Services Tax Act, 2017 and Central Goods and Services Tax Act, 2017 in the State of Odisha for works contract services to be provided to M/s East Coast Railway, Odisha vide agreement under discussion - As regards, rest part of question whether E-tender document/LOA would suffice as address proof, said question does not get covered under issue/s on which advance ruling can be sought under CGST Act, 2017 in terms of Section 97(2) of said Act - Therefore, no ruling is given to this question: AAR
- Application disposed of: AAR
2022-TIOL-145-AAR-GST
Attica Gold Pvt Ltd
GST - The applicant states that they are into sale of second hand goods i.e used gold jewellry which they are buying from individual persons and hence they following "Marginal Scheme" for discharging GST liability under Rule 32(5) of CGST Rules 2017 - Applicant wants to know whether they can claim Input Tax Credit on expenses like Rent, Advertisement expenses, commission, Professional expenses and other like expenses while being under Marginal Scheme - Rule 32(5) clearly bars availment of input tax credit on purchase of those second hand goods which he is supplying, however there is no restriction on availment of input tax credit in respect of input services or capital goods - After going through section 16 of CGST Act 2017 i.e Eligibility and conditions for taking input tax credit, it can be seen that there is no bar on registered tax payer to claim input tax credit on input services and corresponding expenses like Rent, Advertisement expenses, commission, Professional expenses, other like expenses and capital Goods while being under Margin Scheme (Rule 32(5) of CGST Rules) - Hence, applicant who is under Marginal Scheme can claim Input Tax Credit on expenses like Rent, Advertisement expenses, commission, Professional expenses and other like expenses subject to section 16 to 21 and rules 36-45 of CGST Act and Rules 2017 - ITC can be claimed on Capital Goods by the Applicant under Marginal Scheme subject to section 16 to 21 and rules 36-45 of CGST Act and Rules 2017: AAR
- Application disposed of: AAR
2022-TIOL-144-AAR-GST
Punjab State Power Corporation Ltd
GST - The first issue on which applicant has requested decision is whether "coal reject" whose invoice is raised by Applicant upon washery job-worker, is taxable under GST Act and Compensation Act in hands of Applicant - Coal rejects generated during the process of Coal washing are nothing but Coal with higher percentage of Ash content - As per clarification, coal rejects are to be classified under HSN 2701 and are taxable at 5% GST Rate + Rs. 400 PMT Compensation Cess - As applicant is not covered under definition of a coal washery, he is not admissible for any exemption from compensation cess - Also, no other exemption notification has been issued in this respect in this regard - Now, the second issue raised by applicant is, whether they are eligible to avail Input tax Credit of GST and Compensation Cess of raw coal brought from its supplier and transferred to washery job worker for cleaning - If applicant fulfils eligibility conditions as prescribed under Section 16 of CGST Act, 2017 and if type of ITC do not fall under categories prescribed under Section 17 of CGST Act, 2017 , applicant is eligible to avail Input Tax Credit of GST and Compensation Cess of raw coal brought from its supplier and transferred to washery/job worker for cleaning - On the next issue as regards to admissible proportion of Input Tax Credit, ITC is available only to the extent of use in furtherance of taxable supplies - It implies that where the goods or services are used by the registered tax payer partly for utilization in taxable supplies and partly for exempt supplies, then ITC will be restricted to an amount which is attributable for taxable supplies (including zero-rated supplies) - Taxpayer has to reverse the proportionate ITC related to exempted supplies as per Rule 42 of said rules - Accordingly, the formula prescribed under Rule 42 of CGST & PGST Rules, 2017 for manner of determination of input Tax credit in respect of inputs or input services and reversal thereof will be applicable in both cases i.e GST and Compensation Cess - Applicant has also requested to allow reversing GST and Compensation cess in terms of quantity of Clean Coal and Coal rejects as same can be easily mapped by them but there is no such provision as prescribed under said Rule 42 ibid. - As Government has added proviso to Rule 42 through Notfn 16/2019 Central Tax and accordingly allowed reversal of ITC made by Real Estate on the basis of Aggregate Carpet Area attributable to exempt supply but nothing has been issued regarding reversal of ITC on the basis of quantity till dale - Thus, provisions prescribed under Rule 42 of CGST Rules, 2017 should be followed by applicant and they have to make reversal in proportion of exempt/Taxable turnover - Coal rejects are to be classified under HSN 2701 and are taxable at 5% GST Rate Rs. 400 PMT Compensation Cess: AAR
- Application disposed of: AAR
2022-TIOL-143-AAR-GST
KDS Services Pvt Ltd
GST - Services rendered under contract with State Urban Development Agency, Uttar Pradesh (SUDA), and for PMAY are in relation to functions entrusted to Municipalities under Article 243W and to Panchayats under Article 243G of the Constitution of India - Such services would qualify as Pure Service (excluding works contract service or other composite supplies involving supply of any goods) and are, accordingly, exempt from the payment of GST since duly covered in Sl. No 3 of Notification No. 12/2017-CTR: AAR
- Application disposed of: AAR |
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