In Re: IMF Cognitive Technology Private Limited
GST
2019 (2) TMI 918 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2019 (21) G. S. T. L. 579 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AAR
Dated:- 9-1-2019
ARN No. RAJ/AAR/2018-19/30
GST
J.P. MEENA AND HEMANT JAIN MEMBER
Present for the applicant: Shri Jatin Harjai (Authorised Representative)
Note: Under Section 100 of the CGST/RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act 2017, within a period of 30 days from the date of service of this order.
The Issue raised by M/s. IMF Cognitive Technology Private Limited {hereinafter the applicant} is fit to pronounce advance ruling as it falls under ambit of the Section 97 (2) (d) and it is given as under:
d. Admissibility of input tax credit of tax paid or deemed to have been paid;
Further, the applicant being a registered person, GSTIN is 08AAEC11271Q1Z6, as
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is the state of registered place of business i.e. Rajasthan.
d. In case of procurement of inward supplies from other states, at times supplier charges CGST & SGST of the state of supplier. For example, the applicant is registered in the state of Rajasthan and if it procures services of short term accommodation (i.e. hotel) in Haryana, the supplier (i.e. hotel) normally charges of CGST & SGST of that state, due to the reason of place of supply being in the state of supplier.
e. That, the eligibility for input tax credit inferred by the provision of sub sec. (1) of sec. 16 of CGST Act, 2017. It is worthwhile to produce Sec. 16(1) for ready reference:
16(1) 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 and the said
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and Services Tax Act; or
e. the tax payable under the provisions of sub-sections (3) and (4) of section 7 of the Union Territory Goods and Services Tax Act, but does not include the tax paid under the composition levy”
In the case under consideration the hotel services which are procured in the state of Haryana the registered person has paid the CGST (i.e. Central Tax) & Haryana SGST. Such hotel services are being used exclusively for the purposes of business of the applicant i.e. for meeting with prospective buyers and vendors.
2. OUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT
Applicant has sought ruling to be pronounced under section 97 (2) (d) of the CGST Act 2017, on the following questions:
a. Whether the input tax credit of Central Tax paid in Haryana be available to the applicant who is registered in Rajasthan State, whereby such tax is paid on inward supplies used for business of person registered in Rajasthan?
3. COMMENTS OF JURISDICTIONAL OFFICER:
The jurisdictional
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hrough the preamble of the CGST Act, 2017 this authority is of the opinion that CGST is payable in case of intra-state trade or commerce i.e. intra-state supply of goods and services.
* The preamble of IGST Act, 2017 is as below:
An Act to make a provision for levy and collection of tax on inter-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto.
Thus, IGST is payable in the case of inter-state supply of goods and services.
* The basic principle behind the provisions relating to the place of supply is that GST is a destination based tax. Thus tax is finally payable where goods and services are consumed.
* In the instant case the applicant who is registered in state of Rajasthan has availed and consumed accommodation services provided by a hotel located outside the state of Rajasthan.
Therefore, it is observed that in the GST regime SGST and CGST charged for the services provided and availed in a state w
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