TMI BlogClarification on various issue pertaining to GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... in issues with respect to i. refund claimed by the recipients of supplies regarded as deemed export; ii. interpretation of section 17(5) of the CGST Act ; iii. perquisites provided by employer to the employees as per contractual agreement; and iv. utilisation of the amounts available in the electronic credit ledger and the electronic cash ledger for payment of tax and other liabilities. 2. In order to clarify the issue and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act ), hereby clarify the issues as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is to be included in the Net ITC for computation of refund of unutilised ITC under rule 89(4) rule 89 (5) of the CGST Rules, 2017. The ITC of tax paid on deemed export supplies, allowed to the recipients for claiming refund of such tax paid, is not ITC in terms of the provisions of Chapter V of the CGST Act, 2017 . Therefore, such ITC availed by the recipient of deemed export supply for claiming refund of tax paid on supplies regarded as deemed exports is not to be included in the Net ITC for computation of refund of unutilised ITC on account of zero-rated supplies under rule 89(4) or on account of inverted rated structure under rule 89(5) of the CGST Rules, 2017 . Clarification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide to its employees, under any law for the time being in force. 3. Accordingly, it is clarified that the proviso after sub-clause (iii) of clause (b) of sub-section (5) of section 17 of the CGST Act is applicable to the whole of clause (b) of sub-section (5) of section 17 of the CGST Act . 4. Whether the provisions of sub- clause (i) of clause (b) of sub- section (5) of section 17 of the CGST Act bar availment of ITC on input services by way of leasing of motor vehicles, vessels or aircraft or ITC on input services by way of any type of leasing is barred under the said provisions? 1. Sub-clause (i) of clause (b) of sub- section (5) of section 17 of the CGST Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iable for GST? 1. Schedule III to the CGST Act provides that services by employee to the employer in the course of or in relation to his employment will not be considered as supply of goods or services and hence GST is not applicable on services rendered by employee to employer provided they are in the course of or in relation to employment. 2. Any perquisites provided by the employer to its employees in terms of contractual agreement entered into between the employer and the employee are in lieu of the services provided by employee to the employer in relation to his employment. It follows therefrom that perquisites provided by the employer to the employee in terms of contractual agreement entered into between the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces or both but excludes tax payable on reverse charge mechanism . 4. Accordingly, it is clarified that any payment towards output tax, whether self-assessed in the return or payable as a consequence of any proceeding instituted under the provisions of GST Laws, can be made by utilization of the amount available in the electronic credit ledger of a registered person . 5. It is further reiterated that as output tax does not include tax payable under reverse charge mechanism, implying thereby that the electronic credit ledger cannot be used for making payment of any tax which is payable under reverse charge mechanism. 7. Whether the amount available in the electronic credit ledger can be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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