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TMI Blog2020 (6) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... . (2) Entire I.T.C. @ 18% eligible on Purchases of LPG Gas (bulk) through Tanker? 3. The applicant have enclosed copies of Purchase invoice and Sales invoice for ready reference and have requested to grant them a personal hearing in the matter and after considering the above facts, to pass a Determination Order or Advance Ruling as per provisions of the Act. DISCUSSION & FINDINGS 4. We have considered the submissions made by the applicant in their application for advance ruling as well as the arguments/discussions made by them at the time of personal hearing. As per their submission, the applicant are engaged in the business of purchasing LPG Gas (Bulk) through Tanker and thereafter, refilling the same in two types of bottles- 17 kgs. and 21 kgs. and sell it to Commercial Customer on Rate of GST Applicable @ 18%. Secondly, they are refilling the gas in bottles of 12 kgs. and 15 kgs. also and selling it to Domestic Customers, on which GST rate applicable is @5%. The applicant have submitted a copy of Purchase Invoice issued to them by M/s. Aegis Gas (LPG) private limited, Tranja village, Post-Limbasa, Tal: Matar, District-Kheda through which they have received 11.970 tonnes of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Butane mixture, Liquefied Propane, Liquefied Butane and Liquefied Petroleum Gases (LPG) for supply to household domestic consumers or non-domestic exempted category (NDEC) customers by the Indian Oil Corporation Limited, Hindustan petroleum Corporation Limited or Bharat Petroleum Corporation ltd. As per the GST tariff (based on Schedule-I of Customs Tariff Act, 1975)Liquified Petroleum Gas (LPG) is classified under Chapter-27 and Sub-heading 2711 1900.The said item appears at Sr.No.165 of Schedule I of Notification No.1/2017-Central Tax (Rates) dated 28.06.2017 wherein the GST rate is 5% (2.5% SGST + 2.5% CGST) which is available only in cases where LPG is supplied to non-domestic exempted category (NDEC) customers by the Indian oil Corporation ltd., Hindustan Petroleum Corporation ltd. or Bharat Petroleum Corporation ltd. Consumers under NDEC include hospitals, hostels, supplies for mid-day meal schemes, government office canteens, messes of police, BSF, CISF besides that of defence establishments, the canteens run on cooperative basis, laboratories attached to schools, colleges and research institutes and charitable institutes. As per the purchase invoice given by the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through tanker which they are refilling into smaller packs/cylinders and selling it to their commercial/domestic consumers. They have asked whether they are eligible to take credit of the entire input tax credit (I.T.C.) @ 18% on Purchases of LPG Gas (bulk) through Tanker. 10. Input tax credit is discussed in detail in Sections-16, 17 and 18 of the CGST Act, 2017 as under: Section-16. (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,-- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant annual return, whichever is earlier. Provided that the registered person shall be entitled to take input tax credit after the due date of furnishing of the return under section 39 for the month of September, 2018 till the due date of furnishing of the return under the said section for the month of March, 2019 in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18, the details of which have been uploaded by the supplier under subsection (1) of section 37 till the due date for furnishing the details under sub-section (1) of said section for the month of March, 2019. Section-17. (1) Where the goods or services or both are used by the registered person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business. (2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa): Provided that the input tax credit in respect of such services shall be available- (i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein; (ii) where received by a taxable person engaged- (I) in the manufacture of such motor vehicles, vessels or aircraft; or (II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him; (b) the 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 hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 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; (c) where any registered person ceases to pay tax under section 10, he shall be entitled to take credit of input tax in respect of inputs held in stock, inputs contained in semi-finished or finished goods held in stock and on capital goods on the day immediately preceding the date from which he becomes liable to pay tax under section 9: Provided that the credit on capital goods shall be reduced by such percentage points as may be prescribed; (d) where an exempt supply of goods or services or both by a registered personbecomes a taxable supply, such person shall be entit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and machinery determined under section 15, whichever is higher: Provided that where refractory bricks, moulds and dies, jigs and fixtures are supplied as scrap, the taxable person may pay tax on the transaction value of such goods determined under section 15. 11. Input tax credit is discussed in detail in Rules-36, 37, 40, 41 and 42 of the CGST Rules, 2017 as under: Rule-36. Documentary requirements and conditions for claiming input tax credit.- (1) The input tax credit shall be availed by a registered person, including the Input Service Distributor, on the basis of any of the 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 sub-section (3) of section 31, subject to the payment of tax; (c) a debit note issued by a supplier in accordance with the provisions of section 34; (d) a bill of entry or any similar document prescribed under the Customs Act, 1962 or rules made thereunder for the assessment of integrated tax on imports; (e) an Input Service Distributor invoice or Input Service Distributor cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the date of the issue of the invoice: Provided that the value of supplies made without consideration as specified in Schedule I of the said Act shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16. Provided further that the value of supplies on account of any amount added in accordance with the provisions of clause (b) of sub-section (2) of section 15 shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16. (2) The amount of input tax credit referred to in sub-rule (1) shall be added to the output tax liability of the registered person for the month in which the details are furnished. (3) The registered person shall be liable to pay interest at the rate notified under sub-section (1) of section 50 for the period starting from the date of availing credit on such supplies till the date when the amount added to the output tax liability, as mentioned in sub-rule (2), is paid. (4) The time limit specified in sub-section (4) of section 16 shall not apply to a claim for reavailing of any credit, in accordance with the provisions of the Act or the provisions of this Chapte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils furnished in the declaration under clause (b) shall be duly certified by a practicing chartered accountant or a cost accountant if the aggregate value of the claim on account of central tax, State tax, Union territory tax and integrated tax exceeds two lakh rupees; (e) the input tax credit claimed in accordance with the provisions of clauses (c) and (d) of subsection (1) of section 18 shall be verified with the corresponding details furnished by the corresponding supplier in FORM GSTR-1 or as the case may be, in FORM GSTR- 4, on the common portal. (2) The amount of credit in the case of supply of capital goods or plant and machinery, for the purposes of sub-section (6) of section 18, shall be calculated by reducing the input tax on the said goods at the rate of five percentage points for every quarter or part thereof from the date of the issue of the invoice for such goods. Rule-41. Transfer of credit on sale, merger, amalgamation, lease or transfer of a business.-(1) A registered person shall, in the event of sale, merger, de-merger, amalgamation, lease or transfer or change in the ownership of business for any reason, furnish the details of sale, merger, de-merger, amal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 17, be denoted as 'T3'; (e) the amount of input tax credit credited to the electronic credit ledger of registered person, be denoted as 'C1' and calculated as- C1 = T- (T1+T2+T3); (f) the amount of input tax credit attributable to inputs and input services intended to be used exclusively for effecting supplies other than exempted but including zero rated supplies, be denoted as 'T4'; Explanation: For the purpose of this clause, it is hereby clarified that in case of supply of services covered by clause (b) of paragraph 5 of Schedule II of the said Act, value of T4 shall be zero during the construction phase because inputs and input services will be commonly used for construction of apartments booked on or before the date of issuance of completion certificate or first occupation of the project, whichever is earlier, and those which are not booked by the said date. (g) 'T1', 'T2', 'T3' and 'T4' shall be determined and declared by the registered person at the invoice level in FORM GSTR-2 and at summary level in FORM GSTR-3B; (h) input tax credit left after attribution of input tax credit under clause (f) shall be called common credit, be denoted as 'C2' and calcula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause, it is hereby clarified that the aggregate value of exempt supplies and the total turnover shall exclude the amount of any duty or tax levied under entry 84 and entry 92A of List I of the Seventh Schedule to the Constitution and entry 51 and 54 of List II of the said Schedule; (j) the amount of credit attributable to non-business purposes if common inputs and input services are used partly for business and partly for non-business purposes, be denoted as 'D2', and shall be equal to five per cent. of C2; and (k) the remainder of the common credit shall be the eligible input tax credit attributed to the purposes of business and for effecting supplies other than exempted supplies but including zero rated supplies and shall be denoted as 'C3', where,- C3 = C2 - (D1+D2); (l) the amount 'C3 ' shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax; (l) the amount 'C3', 'D1' and 'D2' shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax and declared in FORM GSTR-3B or through FORM GST DRC-03; (m) the amount equal to aggregate of 'D1' and 'D2' shall be rever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017, published vide GSR No. 690(E) dated the 28th June, 2017, as amended for the entire period from the commencement of the project or 1stJuly, 2017, whichever is later, to the completion or first occupation of the project, whichever is earlier, before the due date for furnishing of the return for the month of September following the end of financial year in which the completion certificate is issued or first occupation takes place of the project, in the manner prescribed in the said sub-rule, with the modification that value of E/F shall be calculated taking value of E and F as under: E= aggregate carpet area of the apartments, construction of which is exempt from tax plus aggregate carpet area of the apartments, construction of which is not exempt from tax, but which have not been booked till the date of issuance of completion certificate or first occupation of the project, whichever is earlier: F= aggregate carpet area of the apartments in the project; and,- (a) where the aggregate of the amounts calculated finally in respect of 'D1' and 'D2' exceeds the aggregate of the amounts determined under sub-rule (1) in respect of 'D1' and 'D2', such excess shall be reversed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rea of the commercial apartments in the project AT = total carpet area of all apartments in the project (b) The amount of final eligible common credit on commercial portion in the project (C3final_comm) shall be calculated as under C3final_comm =C3aggregate_comm x (E/ F) Where, - E = total carpet area of commercial apartments which have not been booked till the date of issuance of completion certificate or first occupation of the project, whichever is earlier. F = AC = total carpet area of the commercial apartments in the project (c) where, C3aggregate_comm exceeds C3final_comm, such excess shall be reversed by the registered person in FORM GSTR-3B or through FORM GST DRC-03 in the month not later than the month of September following the end of the financial year in which the completion certificate is issued or first occupation takes place of the project and the said person shall be liable to pay interest on the said excess amount at the rate specified in sub-section (1) of section 50 for the period starting from the first day of April of the succeeding financial year till the date of payment; (d) where, C3final_comm exceeds C3aggregate_comm, such excess amount shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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