2020 (12) TMI 795 - AAR - GST

Correction made to CGST Act for Input Tax Credit on passenger vehicles, clarifying effective date for leasing.

The Authority for Advance Ruling acknowledged a typographical error in an Advance Ruling Order issued to M/s. Tata Motors Limited, concerning the date of ... Input Tax Credit - Amendment of Section 17(5) CGST Act - Leasing, renting or hiring of motor vehicles for transportation of persons - Seating capacity thresholdInput Tax Credit - Amendment of Section 17(5) CGST Act - Correction of typographical error in the earlier Advance Ruling order to reflect the correct date of amendment to Section 17(5) as 01.02.2019 and its effect on availability of ITC. - HELD THAT: - The Authority has acknowledged a typographical error in paragraph 5.2.6 of Advance Ruling Order No. GST-ARA-23/2019-20/B-46 dated 25.08.2020 where the date of amendment of Section 17(5) was incorrectly recorded as 01.12.2016. On review, the Authority found that the operative part of the order correctly states the effective date of the amendment as 01.02.2019. The corrigendum corrects paragraph 5.2.6 to state that Section 17(5) debarred Input Tax Credit on motor vehicles or conveyances used in transport of passengers until the date of amendment, namely 01.02.2019, and that with effect from 01.02.2019 ITC is allowed on leasing, renting or hiring of motor vehicles for transportation of persons having an approved seating capacity of more than thirteen persons (including the driver). [Paras 5]Paragraph 5.2.6 of the earlier order is corrected to show the amendment date as 01.02.2019 and to confirm that ITC is available only with effect from 01.02.2019 for leasing, renting or hiring of motor vehicles with approved seating capacity of more than thirteen persons.Final Conclusion: Corrigendum issued to correct a typographical error in the earlier Advance Ruling so that the amendment date of Section 17(5) is accurately recorded as 01.02.2019, thereby confirming that Input Tax Credit is available to the applicant only from 01.02.2019 for the specified category of motor vehicle services. Issues: Correction of typographical error in the Advance Ruling OrderAnalysis:The judgment pertains to a correction in an Advance Ruling Order issued under Sections 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017. The applicant, M/s. Tata Motors Limited, identified an error in the observation part of the ruling, specifically in para No. 5.2.6, where the date of amendment of Section 17(5) of the CGST Act, 2017 was incorrectly mentioned as '01.12.2016' instead of the correct date '01.02.2019.' The correction was necessary as the operative part correctly stated that Input Tax Credit (ITC) is available to the applicant only after 01.02.2019. The Authority for Advance Ruling acknowledged the typographical error and issued a corrigendum order to rectify the mistake in para 5.2.6 of the original ruling.The corrigendum order explicitly states the corrected version of para 5.2.6, emphasizing that Section 17(5) initially disallowed ITC on motor vehicles or conveyances used in passenger transport until the amendment date of 01.02.2019. Following the amendment, ITC became permissible for leasing, renting, or hiring motor vehicles for transporting persons with a seating capacity exceeding thirteen, including the driver. The correction clarified the intent of the ruling, ensuring accurate interpretation and application of the law regarding Input Tax Credit on motor vehicles used for passenger transport. The issuance of the corrigendum aimed to maintain the integrity and accuracy of the original Advance Ruling Order by rectifying the typographical error promptly and effectively.