In Re: VNR Seeds (P.) Ltd.,
GST
2018 (7) TMI 881 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – 2018 (14) G. S. T. L. 559 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – AAR
Dated:- 6-6-2018
NO. STC\/AAR\/01\/2018
GST
S.K. BUXY AND RAJESH KUMAR SINGH, MEMBER
\nRuling
\n1. The Applicant M\/s VNR Seeds Pvt. Ltd. Raipur, GSTIN 22AACCV0174D1ZW has filed the application U\/s 97 of the Chhattisgarh Goods & Services Tax Act, 2017 requesting advance ruling to keep Input Tax Credit (ITC) of the packaging material till they are into their stock and regarding ITC while transferring goods between their 'own branches. This ruling has been sought by the applicant in the light of section 17 of CGGST Act, 2017 stipulating therein non accumulation of ITC in case of units dealing in non-tax\/exempted goods. The aforesaid Advance ruling has also been requested by the applicant as for each such transfer they have to pay GST merely for internal transfer of goods from one b<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s India and are required to pay GST merely for these inter-branch transfers. It was thus their contention that they are liable for multiple tax which is against the core principles of GST. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n pal supply; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n fecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: VNR Seeds (P.) Ltd.,GST2018 (7) TMI 881 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – 2018 (14) G. S. T. L. 559 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – AARDated:- 6-6-2018NO. STC\/AAR\/01\/2018 GSTS.K. BUXY AND RAJESH KUMAR SINGH, MEMBER Ruling 1. The Applicant M\/s VNR Seeds Pvt. Ltd. Raipur, GSTIN 22AACCV0174D1ZW … Continue reading “In Re: VNR Seeds (P.) Ltd.,”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-12602","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12602"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12602\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n4. Personal Hearing: -In keeping with the established principles of natural justice, personal hearing in the matter was extended to the applicant. Shri Manish Karkun, Assistant General Manager (Accounts) of the applicant, M\/s VNR Seeds Pvt. Ltd., Raipur, appeared before us for hearing on 24.5.2018 and reiterated their contention. He also furnished a written submission dated 24\/5\/2018, which has been taken on record.
\n5. The legal position, Analysis and Discussion:-
\nThe provisions for implementing the CGST Act and CGGST Act, 2017 are similar.
\nNow we sequentially discuss the provisions that are applicable in the present case -The Applicant is involved in –
\na. The supply of seeds (exempted item) in packaged form using packaging material (taxable under GST) and also in
\nb. Supply of such packaging ma<\/p>\n
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\nii U\/s. 8 of CGGST Act, 2017:- Tax liability on composite and mixed supplies. The Tax Liability on a composite or a mixed supply shall be determined in the following manner, namely:-
\n(a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply.
\n(b) a mixed supply………..
\nIii U\/s. 16(1) of CGGST 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 and the said amount shall be credited to the electronic credit ledger of such person.
\niv U\/s. 49(1) of CGGST Act, 2017:- Every deposit made towards tax, interest, penalty, fee or any other amount by a person by internet banking or by using credit or debit cards or Na<\/p>\n
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\n5.2 As per the above stipulated provisions of section 17(2) of CGGST Act, 2017 any registered recipient can claim ITC to the extent of taxable stock or taxable outward supply shown in their returns. The registered recipient cannot claim ITC on the amount of taxable supply component included in the total amount of exempted supply. The amount of unclaimed ITC shall also be reversed in the electronic ledger of the same month.
\nThus it is clear from the above legal provisions that if the applicant supplies seeds (exempted item) in packaged form using such packing materials (taxable item), to its own branches in other States, then no ITC could be claimed on the packaging material used for the said exempted supply of seeds. Whereas, if the applicant supplies only packing material to own branches in ot<\/p>\n
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