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Clarification on various issue pertaining to GST - GST - States - 9/2022-TNGST

Extract

..... us representations have been received by GST Council seeking clarification on certain issues with respect to - i. refund claimed by the recipients of supplies regarded as deemed export; ii. interpretation of section 17(5) of the TNGST Act, 2017; iii. perquisites provided by employer to the employees as per contractual agreement; and iv. utilisation of the amounts available in the electronic credit ledger and the electronic cash ledger for payment of tax and other liabilities. 2. In order to clarify the issue and to ensure uniformity in the implementation of the provisions of law across the field formations, the Commissioner, in exercise of powers conferred by section 168 of the Tamil Nadu Goods and Services Tax Act, 2017 (hereinafter referr .....

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Clarification on various issue pertaining to GST - GST - States

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..... ilised ITC under rule 89(4) & rule 89 (5) of the TNGST Rules, 2017. The ITC of tax paid on deemed export supplies, allowed to the recipients for claiming refund of such tax paid, is not ITC in terms of the provisions of Chapter V of the TNGST Act, 2017. Therefore, such ITC availed by the recipient of deemed export supply for claiming refund of tax paid on supplies regarded as deemed exports is not to be included in the “Net ITC” for computation of refund of unutilised ITC on account of zero-rated supplies under rule 89(4) or on account of inverted rated structure under rule 89(5) of the TNGST Rules, 2017. Clarification on various issues of section 17(5) of the TNGST Act 3. Whether the proviso at the end of clause (b) of sub- .....

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Clarification on various issue pertaining to GST - GST - States

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..... ction 17 of the TNGST Act is applicable to the whole of clause (b) of sub-section (5) of section 17 of the TNGST Act. 4. Whether the provisions of sub- clause (i) of clause (b) of sub- section (5) of section 17 of the TNGST Act bar availment of ITC on input services by way of “leasing of motor vehicles, vessels or aircraft” or ITC on input services by way of any type of leasing is barred under the said provisions? 1. Sub-clause (i) of clause (b) of sub- section (5) of section 17 of the TNGST Act provides that ITC shall not be available in respect of following supply of goods or services or both- “(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or h .....

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Clarification on various issue pertaining to GST - GST - States

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..... in the course of or in relation to employment. 2. Any perquisites provided by the employer to its employees in terms of contractual agreement entered into between the employer and the employee are in lieu of the services provided by employee to the employer in relation to his employment. It follows therefrom that perquisites provided by the employer to the employee in terms of contractual agreement entered into between the employer and the employee, will not be subjected to GST when the same are provided in terms of the contract between the employer and employee. Utilisation of the amounts available in the electronic credit ledger and the electronic cash ledger for payment of tax and other liabilities 6. Whether the amount available in the .....

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Clarification on various issue pertaining to GST - GST - States

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..... payable under reverse charge mechanism, implying thereby that the electronic credit ledger cannot be used for making payment of any tax which is payable under reverse charge mechanism. 7. Whether the amount available in the electronic credit ledger can be used for making payment of any liability other than tax under the GST Laws? As per sub-section (4) of section 49, the electronic credit ledger can be used for making payment of output tax only under the TNGST Act or the IGST Act. It cannot be used for making payment of any interest, penalty, fees or any other amount payable under the said acts. Similarly, electronic credit ledger cannot be used for payment of erroneous refund sanctioned to the taxpayer, where such refund was sanctioned in .....

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Clarification on various issue pertaining to GST - GST - States

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