Home Case Index All Cases GST GST + AAR GST - 2020 (4) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 631 - AAR - GSTInput Tax Credit - manufacture and supply of salt and bromine chemicals - credit on bunds which are constructed and used in the manufacture of salt and bromine chemicals - zero rated supply or not - HELD THAT:- Section 16(2) of IGST Act states that “subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, 2017, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply.” - Whereas as per section 2(47) of the CGST Act, exempt supply includes nil rated supply and non-taxable supply. Thus, as per section 16(2) of the IGST Act, Input tax credit is available on inputs and input services to make Zero rated supplies (such supply may be an exempt supply), subject to the provisions of sub-section (5) of section 17 of CGST Act. As per Clauses (c) and (d) of Section 17(5) of the GST Acts, input tax credit is not admissible in respect of works contract services or any goods and services for construction of immovable property (other than plant and machinery). Thus, a specific exception is made with regard to “plant and machinery. Input tax credit of GST paid on goods and services used to construct the “bunds” is admissible to M/s. Satyesh Brinechem Private Limited, provided that the bunds are used for making zero rated supplies and fulfill the conditions which are necessary for treating the bunds as “plant and machinery”.
|