Home Case Index All Cases GST GST + AAR GST - 2022 (11) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (11) TMI 260 - AAR - GSTInput Tax Credit - applicant is under Marginal Scheme - credit on expenses like Rent, Advertisement expenses, commission, Professional expenses and other like expenses - credit on Capital Goods for the Applicant under Marginal Scheme - HELD THAT:- Rule 32(5) says that, a taxable supply provided by a person dealing in buying and selling of second hand goods i.e., used goods as such or after such minor processing which does not change the nature of the goods and where no input tax credit has been availed on the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price. If the value of such supply is negative, then it shall be ignored - rule 32(5) clearly bars availment of input tax credit on the purchase of those second hand goods which he is supplying, however there is no restriction on the 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 we can see that there is no bar on the 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) - the Applicant can claim input tax credit on the expenses in respect of input services and capital goods subjected to section 16 to 21 and rules 36-45 of CGST Act and Rules 2017.
|