TMI Blog2019 (10) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... or availed by a registered person before its effective date of registration under GST - further, in case of inputs being goods, the applicant is only eligible to claim input tax credit of the tax paid on such goods (inputs) lying in stock on the day previous to the effective date of registration, which are intended to be used in the course or furtherance of business, subject to other conditions and restrictions prescribed in the GST Act and in Rule 40 of the CGST Rules, in case the application for registration has been filed within thirty days from the date on which the applicant became liable for registration under the Act. - KAR ADRG 62/2019 - - - Dated:- 20-9-2019 - SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER Represented by: Sri Atul Puri, Chartered Accountant ORDER UNDER SECTION 98(4) OF THE CENTRAL GOODS SERVICES TAX ACT, 2017 AND UNDER 98(4) OF THE KARNATAKA GOODS SERVICES TAX ACT, 2017 1. M/s. Knowlarity Communications Private Limited, (called as the Applicant hereinafter), having GSTIN number 29AADCK7606G1ZF, have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 KGST Act, 2017 read with Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me period to claim the input tax credit under section 16(4) of the CGST Act, 2017 has not lapsed. 4.1 The Company, in order to save itself from losing the amount of input tax credit of intra-State Karnataka GST, which is charged by the telecom operators on Company in the state of Karnataka, has got itself registered under the GST Law in the State of Karnataka. The effective date of registration is 01.04.2018. 4.2 The Company received certain input invoices of goods or services procured by its office located in the State of Karnataka. These invoices were issued during July 1st, 2017 to March 31st, 2018. Now the Company intends to seek clarification, whether or not its registered office in the state of Karnataka will be eligible to claim input tax credit of Goods and Services Tax charged on such invoices of supply procured by it on a date prior to 01.04.208 (i.e. effective date of registration in the state of Karnataka). 4.3 In this regard, the applicant makes the following submissions: a. Section 16 of the CGST Act, 2017 defines the eligibility and condition for taking input tax credit: Every registered person shall, subject to such c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... must be used or intended to be used in the course or furtherance of his business 3. He is in possession of tax invoice 4. He has received the goods or services If the above conditions are fulfilled, inter-alia other provisions contained under the Act, a registered person may take the input tax credit. The substantial benefits of taking the credit may not be withdrawn from the tax payer only because of the reason where he delayed in obtaining the registration under the CGST Act in prescribed time. f. Rule 36(1) of the CGST Rules, 2017 defines the documentary requirements and conditions for claiming input tax credit: ITC shall be availed by a registered person on the basis of following documents, namely - (a) an invoice issued by the supplier of goods or services or both in accordance with the provisions of section 31; (b) an invoice issued in accordance with the provisions of clause (f) of subsection (3) of section 31, subject to payment of tax; g. Rule 36(2) of CGST Rules 2017: Input tax credit shall be availed by a registered person only if all the applicable particulars as speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Tax Act, 2003. l. The applicant has also taken the support of the following judgements: a. The judgement of the Hon ble High Court of Karnataka in the case of mPortal India Wireless Solutions (P) Ltd v. Commissioner of Service Tax [(2012) 34 STT 322 (Kar)] = 2011 (9) TMI 450 - KARNATAKA HIGH COURT b. The judgement of CESTAT, Chennai Bench in the case of Premedia Global (P) Ltd v. Commissioner of Service Tax, Chennai [(2016) 56 GST 487 (Chennai-CESTAT)] = 2016 (5) TMI 1002 - CESTAT CHENNAI c. The judgement of CESTAT, Mumbai Bench in the case of Ducon Technologies (India) (P.) Ltd. v. Commissioner of Central Excise, Thane (2018) 95 Taxmann.com 183. = 2018 (6) TMI 1160 - CESTAT MUMBAI d. The judgement of CESTAT, Ahmedabad Bench in the case of C.Metric Solution (P.) Ltd v. Commissioner of Central Excise, Ahmedabad (2013) 39 STT 313 (Ahmedabad-CESTAT) = 2012 (7) TMI 379 - CESTAT, AHMEDABAD The applicant is of the view that a person may claim the input tax credit of GST charged on invoices issued by the supplier for a particular financial year on or before the due date of submitting the return under FORM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant is 01.04.2018. Hence earlier to this period, i.e. from 01.07.2017 to 31.03.2018, the applicant was not a registered person. Further, Rule 10 also deals with the effective date of registration. 5.4 Section 18(1) of the CGST Act, 2017 deals with special circumstances where credit would be available and the same reads as under: (1) Subject to such conditions and restrictions as may be prescribed: (a) a person who has applied for registration under this Act within thirty days from the date on which he becomes liable to registration and has been granted such registration shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act; (b) a person who takes registration under sub-section (3) of section 25 shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration. 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