9911796707
TMI Blog2021 (1) TMI 499X X X X Extracts X X X X X X X X Extracts X X X X ..... y for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within thirty days from the date of communication of this ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such appeal shall be filed in accordance with Section 100 (3) of the GST Act and the rules prescribed thereunder, and the regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the Application 1.1 The applicant is stated to be supplying works contract service to Kolkata Municipal Corporation to construct buildings for various projects. He wants to know whether he is eligible to claim the input tax credit on the inward supplie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable if the outward supply is also works contract service. 2.3 The applicant argues that the credit of input tax on the inputs, including input services, for the outward supply of works contract is not blocked by the above provisions of section 17(5)(c) of the GST Act. Such outward supply of works contract service to a municipal corporation is neither an exempted supply under Entry No. 3 of Notification No. 12/2017 - CT (Rate) dated 28/06/2017 and, therefore, the input tax credit cannot be denied under section 17(2) of the GST Act either. 3. Submissions of the Revenue 3.1 The concerned officer from revenue argues that the prohibition under section 17(5)(c) of the GST Act applies to all supply of works contract service except when it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it prohibits the recipient from claiming input tax credit if his supplies of the goods and services satisfy the conditions mentioned in any of the clauses thereunder. 4.2 For a better understanding of the dispute, excerpts from the provisions under section 17(5) of the GST Act are reproduced below: "Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:- (a) ....... (aa) ........ (ab) ........... (b) ......... (c) works contract service when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e GST Act describes the supply of a class of goods or services. The input tax credit shall not be available in respect of any of the supplies listed under the clauses (a) to (i). In other words, a taxable person cannot claim the input tax credit in respect of these supplies. A taxable person can claim the input tax credit in respect of a supply only if he is a recipient of the said supply. The clauses (a) to (i) of section 17(5) of the GST Act, therefore, in the context of the sentence that constitutes the said sub-section, and in relation to the taxable person claiming an input tax credit, can only refer to inward supplies of the goods and services. Each of these clauses begins with a statement of the goods or services in respect of the in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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