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Step 2 – Draft Generation
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Applicant entitled to claim full input tax credit under CGST Act for 'bill to-ship to' model The ruling authority determined that the applicant, M/S Umax Packaging, Jodhpur, was entitled to claim input tax credit of IGST paid in a 'bill to-ship ...
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Provisions expressly mentioned in the judgment/order text.
Applicant entitled to claim full input tax credit under CGST Act for 'bill to-ship to' model
The ruling authority determined that the applicant, M/S Umax Packaging, Jodhpur, was entitled to claim input tax credit of IGST paid in a 'bill to-ship to' model under Sections 16 and 17 of the CGST Act, 2017. This decision allowed the applicant to avail full input tax credit of IGST charged by M/S Uma Polymers Ltd., enabling compliance with relevant legal provisions.
Issues: 1. Admissibility of input tax credit of tax paid or deemed to have been paid under Section 97 (2) (d) of CGST/RGST Act 2017.
Analysis: The applicant, engaged in manufacturing plastic pouches, sought an advance ruling on the admissibility of input tax credit of IGST charged by M/S Uma Polymers Ltd. The applicant proposed a transaction involving purchasing goods from M/S Uma Polymers Ltd. and supplying them to M/S Pratap Snacks Ltd. in a 'bill to-ship to' model. During the personal hearing, the applicant reiterated their submissions. The ruling authority examined the case, considering the provisions of the CGST Act, 2017.
The ruling authority found that the transaction between the parties constituted a 'bill to-ship to' model, where goods were directed to be delivered by M/S Uma Polymers Ltd. to M/S Pratap Snacks Ltd. through the applicant. This arrangement fell under Section 10 (1) (b) of the IGST Act, where the place of supply is deemed to be the principal place of business of the third party directing the delivery. Additionally, the authority referenced Section 16 and 17 of the CGST Act, 2017, which outline conditions for claiming input tax credit and the restriction on credit for mixed-use goods or services.
Based on the analysis, the ruling concluded that the applicant was eligible to claim input tax credit of IGST paid in the 'bill to-ship to' model as per the provisions of Section 16 and 17 of the CGST Act, 2017. The ruling clarified that M/S Uma Polymers Ltd. could charge IGST to the applicant, who, in turn, could claim full input tax credit in compliance with the relevant legal provisions.
Therefore, the ruling granted the applicant, M/S Umax Packaging, Jodhpur, the right to avail the input tax credit of IGST paid in the 'bill to-ship to' model, in accordance with the specified sections of the CGST Act, 2017.
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