2018 (9) TMI 1768 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (17) G. S. T. L. 698 (App. A. A. R. – GST) – Input Tax Credit – stock transfer from the Head Office of M/s. GKB Lens Pvt. Ltd. to its branches in other States at Zero Value – optical lenses and frames for spectacles and accessories.
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According to the Appellant “the wordings of the Ruling dated 30.05.2018 has created an impression that the recipient would be eligible for Input tax Credit if the supplier paid the tax.” Instead of those wordings the WBAAR should have declared in no uncertain terms that no input tax credit would be available for supply at Zero Value.
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Held that:- From a plain reading of law laid down under section 16 of the GST Act, it is clear that, inter alia, input tax credit is available only when the recipient is in possession of a tax invoice or debit note issued by the supplier registered under the GST Act, and in case of a supply between distinct and/or related persons, as bet
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BAAR2018-19 dated 30.05.2018 = 2018 (6) TMI 72 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL pronounced by the West Bengal Authority for Advance Ruling. 2. M/s. GKB Lens Pvt. Ltd., holding GSTN No. 19AACCG3446M1ZA, re-seller and importer of Sun Glasses, Frames, Lenses, Contact Lenses, etc,. having its Head Office in West Bengal (hereinafter referred to as the Respondent ), transferring, inter alia, goods, namely, Optical Lenses and Frames for Spectacles and Accessories, from Head Office in West Bengal to its branches in other States, sought an Advance Ruling on the following issues- (a) whether the transfer of goods (optical lenses and frames for spectacles and accessories) from Head Office in West Bengal to its branches in other states, can be done at cost price, by applying the second proviso to Rule 28 of CGST Rules, 2017 (instead of 90 % of MRP as required under the First Proviso to Rule 28 of CGST Rules, 2017, and (b) what is meant by the expression where the recipient is eligible
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an impression that the recipient would be eligible for Input tax Credit if the supplier paid the tax. Instead of those wordings the WBAAR should have declared in no uncertain terms that no input tax credit would be available for supply at Zero Value. 4. During the course of the hearing the Respondent submitted a copy of a tax invoice issued by the Head Office, which may be considered as a prototype invoice, as evidence of no tax being charged on supplies made at zero value. It was further submitted and stated that the Respondent has no objection to any clarification being added to the aforementioned Advance Ruling regarding the non-admissibility of credit of Input Tax on goods supplied at zero value. 5. From a plain reading of law laid down under section 16 of the GST Act, it is clear that, inter alia, input tax credit is available only when the recipient is in possession of a tax invoice or debit note issued by the supplier registered under the GST Act, and in case of a supply betwee
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