2018 (6) TMI 431 – AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – 2018 (14) G. S. T. L. 306 (A. A. R. – GST), [2018] 59 G S.T.R. 69 (AAR) – Levy of IGST – Reverse charge mechanism – ocean freight in case of CIF basis contract – Credit of GST on various assets – Whether under Reverse Charge Mechanism, IGST should be paid by the importer on ocean freight in case of CIF basis contract, when service provider and service recipient both are outside the territory of India? – Held that:- Vide N/N. 8/2017- Integrated Tax (Rate) dated 28.6.2017 and N/N. 10/2017- Integrated Tax' (Rate) dated 28.6.2017 an importer is required to pay IGST on the ocean freight. Therefore as on date, even if the importer has already paid IGST on CIF value imported goods, he is still required to pay IGST on ocean fright.
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What will be the supporting document for importer under RCM to take the credit of IGST paid on ocean freight under CIF basis contract? – Held that:- Credit of IGST paid can be taken on the basis
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Section 97 of the CGST Act and the rules made thereunder filed by Bahl Paper Mills Ltd., 5 KM Stone, Aliganj Road, Kashipur, Uttrakhand seeking an advance ruling on the question: (a) Whether under Reverse Charge Mechanism, IGST should be paid by the importer on ocean freight in case of CIF basis contract, when service provider and service recipient both are outside the territory of India. (b) If point no. answer is yes, then what will be the supporting document for ' importer under RCM to take the credit of IGST paid on ocean freight under CIF basis contract. (c) Whether credit will be available in GST of office fixtures 8s furniture, A.C. plant 8s sanitary fittings 'on' newly constructed building on its own account, for furtherance of business and accounting entry is capitalized in books of account. 2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant, on matters or on questions specified in sub section (2) of se
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rms of said Section 97(2) of CGST/SGST Act, 2017, the present application is hereby admitted. 5. Accordingly opportunity of personal hearing was granted to the applicant on 2.4.2018. Shri Nitin Adlakha, C.A. appeared for personal hearing and made submissions in this regard. For A.C. Plant and furniture 85 fixtures he stated that all these goods are received by them after implementation of GST. This is not with respect of transitional provisions. 6. In the present application, applicant has requested for advance ruling on the questions mentioned at 1(a), 1(b) and 1(c) above which are discussed as under : (a) Whether under Reverse Charge Mechanism, IGST should be paid by the importer on ocean freight in case of CIF basis contract, when service provider and service recipient both are outside the territory of India : In this regard it is observed that vide notification no. 8/2017- Integrated Tax (Rate) dated 28.6.2017 and notification no. 10/2017- Integrated Tax' (Rate) dated 28.6.2017
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herance of business and accounting entry is capitalized in books of account As per explanation to the Section 17 of CGST Act, 2017 credit is not available in respect of land, building or any other civil structure……. Therefore, in view of the aforesaid provisions of law, Cenvat Credit of GST paid in relation with building or any other civil structure is not available and since sanitary fittings are integral part of building or any other civil structure, cenvat credit of GST paid on such sanitary fittings is not available. However, credit of GST is available on office fixtures 85 furniture, A.C. plant. To further strengthen the view, the authority rely on the CBIC Board Circular No. 943/04/2011-CX dated 29th April 2011 wherein it was clarified that the goods such as furniture and stationery used in an office within the factory are goods used in the factory and are used in relation to the manufacturing business and hence the credit of the same is allowed. Further the Hon'ble CESTA
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