9911796707
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 ..... 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 Government, in exercise of its powers conferred by section 168 (1) of the Sikkim Goods and Services Tax Act, 2017 (hereinafter referred to as "SGST Act"), hereby clarify the issues as under: S. No. Issue Clarification Refund claimed by the recipients of supplies regarded as deemed export 1. Whether the Input Tax Credit (ITC) availed by the recipient of deemed export supply for claiming refund of tax paid on supplies regarded as deemed exports would be subjected to provisions of Section 17 of the SGST Act, 2017. The refund in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation 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 SGST Rules, 2017. Clarification on various issues of section 17(5) of the SGST Act 3. Whether the proviso at the end of clause (b) of sub-section (5) of section 17 of the SGST Act is applicable to the entire clause (b) or the said proviso is applicable only to sub-clause (iii) of clause (b)? 1. Vide the Sikkim Goods and Service Tax (Amendment Act) 2018, clause (b) of sub-section (5) of section 17 of the SGST Act was substituted with effect from 01.02.2019. After the said substitution, the proviso after sub-clause (iii) of clause (b) of sub-section (5) of section 17 of the SGST Act provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SGST 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 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 supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 available in the electronic credit ledger can be used for making payment of any tax under the GST Laws? 1. In terms of sub - section (4) of section 49 of SGST Act, the amount available in the electronic credit ledger may be used for making any payment towards output tax under the SGST Act or the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as "IGST Act"), subject to the provisions relating to the order of utilisation of input tax credit as laid down in section 49B of the SGST Act read with rule 88A of the SGST Rules. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty, 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 sanctioned in cash.
8.
Whether the amount available in the electronic cash ledger can be used for making payment of any liability under the GST Laws?
As per sub - section (3) of section 49 of the SGST Act, the amount available in the electronic cash ledger may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the provisions of the GST Laws.
[F. No. GOS/2009-2010/16-1C (9) VOL-II]
Manoj Rai
Commissioner
Commercial Taxes Division
Finance Department X X X X Extracts X X X X X X X X Extracts X X X X
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