TaxTMI 
TaxTMI 
TaxTMI 
The Telangana, AAR in the matter ofIN RE: M/S. NOORI TRAVELS [2024 (5) TMI 235 - AUTHORITY FOR ADVANCE RULING, TELANGANA]ruled that the credit on motor vehicle cannot be claimed by assessee if supplier has shown the transaction in the period wherein the recipient was claiming the benefit of lower tax rate on the ground that the GSTR-1 filed by the supplier being a statutory return should be given more weightage than the invoice copy raised by the supplier.
Facts:
M/s. Noori Travels (“the Applicant”) was rendering services of passenger transportation and was discharging GST @ 5% under the heading 8(vi) of the Notification 11/2017 Central Tax (Rate) dated June 28, 2017 (“the Notification”).
The Applicant followed the above said policy till July 31, 2023. Thereafter w.e.f August 1, 2023 the Applicant intimated the GST department vide letter willingness to charge GST @12% wherein he would be eligible to claim ITC on goods or services used for rendering services and accordingly, stated charging GST @12%.
The Applicant purchased a motor vehicle with Invoice dated August 04, 2023. However, the car dealer showed the same invoice in his GSTR-1 of the month July 2023.
The Applicant sought the advance ruling as to whether the credit on motor vehicle would be eligible to them.
Issue:
Whether assessee can claim the ITC on goods where invoice date pertains to the period when assessee is eligible to claim ITC and the month in which GSTR-1 filed by supplier was of period when assessee was not eligible to claim ITC?
Held:
The Telangana, AAR in IN RE: M/S. NOORI TRAVELS [2024 (5) TMI 235 - AUTHORITY FOR ADVANCE RULING, TELANGANA] held as under:
- Noted that, the Applicant was rendering passenger transport service which is covered under SAC heading 9964 where the assessee has option to pay GST at the rate 5% or 12%. In case assessee opted to pay GST @ 5% in such case the assessee is not eligible to claim ITC on goods and services used in supply of the services. Whereas, in case assessee opts to pay GST @12% in that case it is eligible to claim ITC.
- Observed that, the Applicant purchased a motor vehicle and the details of such purchase were reported by his supplier in GSTR- 01 of the July 2023.
- Stated that, since the supplier has reported such purchase in GSTR- 01 in the month of July which is a statutory return filed on the common portal and stand on a higher pedestal as evidence when compared to the physical invoice held by the Applicant.
- Ruled that, the supply of car was made in the month of July 2023 when the Applicant was still availing the lower rate of tax on his supplies by forfeiting is right to claim input tax credit on purchase of goods and services and hence the ITC pertaining to the purchase of car is not available to the Applicant.
Our Comments:
The Advance ruling authority has not considered that availment of credit is depended upon fulfilment of conditions stated under Section 16(2) of the CGST Act. There is no provision under GST law which restricts assessee to claim credit on invoices auto populating in GSTR-2B of previous month. Therefore, in our view the credit is available to the Applicant.
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