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TMI Blog2025 (3) TMI 1292X X X X Extracts X X X X X X X X Extracts X X X X ..... ) On the appellant who had sought it in respect of any matter referred to in sub-Section (2) of Section 97 for advance ruling; (b) On the concerned officer or the jurisdictional officer in respect of the appellant. 3. Under Section 103 (2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed. 4. Under Section 104 (1) of the Act, where the Appellate Authority finds that advance ruling pronounced by it under sub-Section (1) of Section 101 has been obtained by the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the appellant as if such advance ruling has never been made. *** Sub: GST - Appeal filed by M/s Kirby Building Systems & Structures India Private Limited, under Section 100 (1) of TGST Act, 2017 against Advance Ruling TSAAR Order No. 22/2023 dated 15.11.2023 passed by the Telangana State Authority for Advance Ruling - Order-in-Appeal passed - Regarding. *** 1. The subject appeal has been filed under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from its employees towards the transportation facilities provided to them? GST is not applicable GST not applicable 4 Whether the appellant is eligible to avail input tax credit in respect of the GST paid on inward supplies used for providing transportation facilities? Not under any statutory obligation to provide these services to his employees. Therefore, the proviso to Section 17 (5) (b) is not applicable for claiming ITC on services engaged by him from third party for this purpose. Provision of service of transportation of employees from residence to office premises is for personal consumption or comfort of employees but not an activity which is part of business as the business of the appellant is to manufacture & supply of pre-engineered buildings and storage racking systems but not supply of transportation of employees or passengers. Input tax credit shall not be available in respect of goods or services or both used for personal consumption as per Section 17 (5) (g). Aggrieved by the advance ruling in respect of point no. (4) i.e., eligibility to avail ITC in respect of GST paid on inward supplies used for providing transportation facilities, the present a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve contended that the ITC on GST paid on inward supplies used for transportation facilities is not restricted since such activity of transportation to the employees is in the course or furtherance of business and not for the personal consumption of the employees. 8.3 As per Section 16 (1) of CGST Act, 2017, every registered person shall, subject to such conditions and restrictions as may be prescribed and, in the manner, specified in Section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business. Section 17 of the CGST Act, 2017 provides for apportionment of credit and blocked credit. Section 17 (5) of the Act restricts the input tax credit subject to the conditions prescribed therein. Section 17 (5) has been amended by CGST (Amendment) Act, 2018 (No: 31 of 2018) dt: 29.08.2018 made effective from 01.02.2019, vide Notification No: 02/2019-CT dt: 29.01.2019. The provisions of Section 17 (5) of the Act are reproduced hereunder: "(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y for an employer to provide the same to its employees under any law for the time being in force." (emphasis supplied) 8.4 The proviso to the Section 17 (5) clearly stipulates that input tax credit shall be available only if it is obligatory on the part of the employer to provide the impugned services to its employees under any law. This is a substantial condition to be complied for getting the benefit of input tax credit. The appellants are under no statutory obligation to provide transportation facility to their employees. This facility has been provided to the employees as a measure of personal convenience since the factory is stated to be located in the remote area. In terms of Section 17 (5) (g) of CGST ACT, 2017, input tax credit is not available in respect of goods or services or both used for personal consumption. 8.5 During the proceedings, the appellant contended that they are providing transport services under contractual agreement and ITC cannot be restricted merely because there is no statutory obligation for providing transportation facilities. We observe that the plain language of the statute is very clear and unambiguous. The credit is available only if goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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