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2022 (9) TMI 198 - AAR - GSTInput Tax Credit - Scope of advance ruling - sub-judice matter - applicant has developed an infrastructure for being leased out against rental and the said rental is leviable to GST - Inputs and Input Services received for development of the said infrastructure by the applicant is admissible ITC or not - HELD THAT:- The powers to restrict flow of Input Tax Credit exist under Section 16 (1) of the CGST Act, 2017, which empowers the Central Government to impose conditions and restrictions on availing input tax credit. This shows a Legislative intent that input tax credit may not always be allowed partially or fully and also that the Input Tax Credit (ITC) a provision does not provide for, that each and every all of the GAT paid is eligible to be availed of as ITC. Admissibility and availability of some of the Credits have been restricted under Section 17 in the Act itself. GST is a new system of taxation which provides setting off of Input Tax Credit (ITC) against the output tax liability along the entire value chain till the final retail level. Under the earlier tax regime, credit of inputs was available for final product in respect of certain taxes/ duties only e.g. credit of duty of excise could not be utilised against VAT and vice versa. It can, therefore, be said that the GST is applicable only on value addition along the entire supply chain and thus cascading effect of taxes has been eliminated. Thus, under the GST regime, more input tax credit is available to tax payers along the entire supply chain as compared to the previous tax regime. Further, the transitional provisions under the CGST Act provide adequate credit of taxes accumulated under the erstwhile taxation regime to taxpayers in the GST regime - Section 17(5) (c) & (d) of the CGST Act, 2017 prescribes denial of credit for certain class of taxpayers with certain conditions and limitations. This would mean that the legislature has decided in its wisdom the credit of taxes which would be allowed in credit as ITC and the tax that has not been allowed, as policy call of the Government, given effect through legislation, cannot be obtained through judicial review. This authority in IN RE: M/S. VARDHAN HOLIDAYS, [2021 (3) TMI 1380 - AUTHORITY FOR ADVANCE, UTTARAKHAND] while dealing with similar issue in the case of M/s Vardhan Holidays, Ramnagar, Uttarakhand, refrained from answering the said matter holding that the matter is sub-judice - the position has not changed since the passing of above ruling, in the case of M/s Vardhan Holidays, Ramnagar and the matter is still sub-judice. The question raised by the applicant is not answered as the matter is sub-judice.
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