TMI Blog2018 (9) TMI 1768X X X X Extracts X X X X X X X X Extracts X X X X ..... ly at Zero Value. Held that:- From a plain reading of law laid down under section 16 of the GST Act, it is clear that, inter alia, input tax credit is available only when the recipient is in possession of a tax invoice or debit note issued by the supplier registered under the GST Act, and in case of a supply between distinct and/or related persons, as between Head Office and Branches, the value declared in the invoice shall be deemed to be the open market value of the goods or services supplied. It is therefore clear that if the value declared in such invoice is zero no input tax credit is available to the recipient. The Ruling of the West Bengal Authority of Advance Ruling is modified to the extent that at the end of the second parag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as required under the First Proviso to Rule 28 of CGST Rules, 2017, and (b) what is meant by the expression where the recipient is eligible for full input tax credit as used in the second proviso to Rule 28 of CGST Rules, 2017. The Advance Ruling Authority ruled that- The applicant has the option of not supplying goods to its branches under the First Proviso of Rule 28 and is eligible to value these goods by applying the terms of the Second Proviso to Rule 28 of GST Act. The expression where the recipient is eligible for full input tax credit , as used in the Second Proviso to Rule 28 of CGST Rules, 2017 means that the recipient will be eligible to take full input tax credit of the amount of tax paid by the supplier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ches, the value declared in the invoice shall be deemed to be the open market value of the goods or services supplied. It is therefore clear that if the value declared in such invoice is zero no input tax credit is available to the recipient. 6. It is seen that the question raised by M/s. GKB Lens Pvt. Ltd. was correctly answered by the Authority of Advance Ruling. However, it may be clarified that no input tax credit is available to the recipient of goods/service if the value declared by the supplier in the invoice/debit note is zero. In the facts and circumstances discussed above the Ruling of the West Bengal Authority of Advance Ruling is modified to the extent that at the end of the second paragraph of the said ruling the followin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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