In Re: GKB LENS PVT. LTD. (Assistant Commissioner, CGST & CX, Tollygunge Division, Kolkata South Commissionerate)
GST
2018 (9) TMI 1768 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (17) G. S. T. L. 698 (App. A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAAR
Dated:- 27-9-2018
05/WBAAAR/Appeal/2018
GST
MR. RAKESH KUMAR SHARMA, AND MR. RANDHIR KUMAR, MEMBER
Present for the Appellant: None
Present for the Respondent: Mr. Sandeep Kothari, Chartered Accountant, Authorised Representative
This Appeal has been filed by the Assistant Commissioner, CGST & CX, Tollygunge Division, Kolkata South Commissionerate (hereinafter referred to as the “Appellant”), on 06.07.2018 against the Advance Ruling No. 07/WBAAR2018-19 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 im
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of Rule 28 and is eligible to value these goods by applying the terms of the Second Proviso to Rule 28 of GST Act.
The expression “where the recipient is eligible for full input tax credit”, as used in the Second Proviso to Rule 28 of CGST Rules, 2017 means that the recipient will be eligible to take full input tax credit of the amount of tax paid by the supplier as mentioned in the respective invoice or any other document valid under Section 16(2)(a) of GST Act.”
3. The Appellant has filed an Appeal against the above Advance Ruling regarding the availability of Input Tax Credit on stock transfer from the Head Office of M/s. GKB Lens Pvt. Ltd. to its branches in other States at Zero Value.
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 woul
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at if the value declared in such invoice is zero no input tax credit is available to the recipient.
6. It is seen that the question raised by M/s. GKB Lens Pvt. Ltd. was correctly answered by the Authority of Advance Ruling. However, it may be clarified that no input tax credit is available to the recipient of goods/service if the value declared by the supplier in the invoice/debit note is zero.
In the facts and circumstances discussed above the Ruling of the West Bengal Authority of Advance Ruling is modified to the extent that at the end of the second paragraph of the said ruling the following sentence will be added:
“No input tax credit, however, would be available for supply of goods / services at Zero Value.”
The Advance Ruling No. 07/WBAAW2018-19 dated 30.05.2018, = 2018 (6) TMI 72 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL pronounced by the West Bengal Authority for Advance Ruling is modified accordingly and the Appeal stands disposed of.
A copy of this Order may be sent
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