9911796707
TMI BlogClarification on various issues pertaining to GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of State Taxes and Excise, Incharge Distt. Kinnour, H.P. Dated Shimla-9 14th July, 2022. Subject: Clarification on various issues pertaining to GST-Reg. Various doubts have been arisen on certain issues with respect to - i. refund claimed by the recipients of supplies regarded as deemed export; ii. interpretation of section 17(5) of the HPGST 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, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arded as deemed exports is to be included in the "Net ITC" for computation of refund of unutilised ITC under rule 89(4) & rule 89 (5) of the HPGST 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 HPGST 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 HPGST Rules, 2017. Clarification on various issues of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-clause (iii) of clause (b) of sub-section (5) of section 17 of the HPGST Act is applicable to the whole of clause (b) of sub-section (5) of section 17 of the HPGST Act. 4. Whether the provisions of sub-clause (i) of clause (b) of sub-section (5) of section 17 of the HPGST 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 HPGST Act provides that ITC shall not be available in respect of following supply of goods or services or both- "(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 arein 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 employer and the employee, will not be subjected to GST when the same are provided in terms of the contract between the employer and employee. Utilisation of the amounts available in the electronic credit ledger and the electronic cash ledger for payment of tax and other liabilities 6. Whether the amount av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de 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 used for making payment of any liability other than tax under the GST Laws? As per sub-section (4) of section 49, the electronic credit ledger can be used for making payment of output tax only under the HPGST Act or the IGST Act. It cannot be used for making payment of any interest, penalty, fees or any other amount payable under the said acts. Similarly, electronic credit ledger cannot be used for payment of erroneous refund sanctioned to the taxpayer, where such refund was sanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
