TMI Blog2020 (7) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... of CGST Act. Whether commercial credit note can be issued to its dealers for post sale discounts without charging GST? - HELD THAT:- In the instant case, the question which has been raised by the applicant is not pertaining to any of the matters mentioned in Section 97 (2) of the GST Act. In fact the question raised is with respect to procedure which the applicant wants to follow. Section 97(2), which encompasses the questions, for the ruling by this Authority does not deal with the issue of whether the applicant can issue commercial credit note to its dealers for post-sale discounts without charging GST. Hence, it is held that this authority does not have jurisdiction to pass any ruling on such matters. The questions posed does not p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions made by the applicant is as under:- 2.1 CEAT Limited (hereinafter referred to as applicant ) is engaged in the manufacture and sale of tyre, tubes and flaps. The said goods are sold to various customers viz. dealers/distributors for their subsequent sale, Original Equipment Manufacturers like Tata Motors, Maruti, etc., Institutional customers, Government department and defence, who in turn sell to retailers/customers and many of whom are end users as well. 2.2 Applicant offers various kinds of discounts such as product discounts, cash discounts and post-sale discounts to its dealers. Such discounts are known to the dealers before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of supply to be full undiscounted value of such commercial credit note. 2.6 Therefore, applicant want to knout whether their dealers / customers are eligible to take ITC on undiscounted value, when GST is paid on full value by supplier and credit note does not include GST. 2.7 Applicant has submitted that on a conjoint reading of Sections 15 and 16 of the CGST Act, 2017, one can conclude that a registered person is entitled to take full ITC charged on the goods or services or both. The recipients/dealers have reimbursed the GST charged on the undiscounted transaction value at the time of supply and in circumstances where the GST charged and paid has not been refunded/reversed on whole or in part, the credit availed need not be revers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the first question, the jurisdictional officer has submitted that the applicant is not fulfilling the condition as per section 15(3)(b)(ii) because there being several dealers to whom post-sales discounts are offered, it is not possible for the applicant to ascertain whether ITC as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply. In reply to the second question the jurisdictional officer has submitted that the applicant can issue the commercial note to his customers. 04. HEARING Preliminary hearing in the matter was held on 17.12.2019. Sh. Bharat Raichandani, Advocate along with Sh. V. R. Inamdar, Sr. Manager appeared, and requested for admissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken or proposed to be undertaken by the applicant. 5.2.2 The question no. 1 raised by the applicant is not in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. This question may be raised only by the concerned dealer and not by the applicant. Hence in view of the provisions of Section 95 of the GST Act, we are of the opinion that this authority is not allowed to answer the question raised by the applicant, being out of the purview of Sec. 95 of CGST Act. 5.3 Further, the applicant has placed reliance on the decision of Appellate Authority for Advance Ruling in MRF Tyres reported at 2019-TIOL-61-AAAR-GST = 2019 (8) TMI 307 - APPELLATE AUTHORITY FOR ADVANCE RULING, T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of supply of goods or services or both; d admissibility of input tax credit of tax paid or deemed to have been paid; e. determination of the liability to pay tax on any goods or services or both; f whether applicant is required to be registered; g. whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. 5.4.2 We observe in the instant case, the question which has been raised by the applicant is not pertaining to any of the matters mentioned in Section 97 (2) of the GST Act. In fact the question raised is with respect to procedure which the applicant wants to follow. Section 97(2), ..... X X X X Extracts X X X X X X X X Extracts X X X X
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