AAR rules on GST procedural scope, ITC eligibility for structural support, and 60-day refund processing timeline

AAR Rajasthan ruled on three GST queries. First, procedural questions regarding common head office usage for multiple taxpayers fall outside AAR's scope under Section 97(2). Second, ITC is eligible on GST paid for structural support of plant and machinery used for outward supply under Section 16(1), subject to restrictions under Section 17. Third, the 60-day period under Section 56 for refund processing runs from application filing date to actual credit in taxpayer's bank account.

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Issues Involved:
1. Eligibility of Input Tax Credit (ITC) on the GST paid on the inward supply of structural support of the plant and machinery.
2. Use of a common head office for multiple taxpayers under GST.
3. Time period for interest on delayed refunds as per Notification No. 13/2017-Central Tax.

Summary:

Issue 1: Eligibility of ITC on Structural Support
The applicant sought clarification on whether ITC is eligible on the GST paid on the inward supply of structural support for the plant and machinery used for making outward supply of goods/services. The Authority ruled that as per Section 16(1) read with Section 17(5)(d) of the CGST Act, 2017, ITC is admissible for structural supports that are used to fix plant and machinery to earth, provided they are used for making outward supplies. The definition of "plant and machinery" includes such structural supports but excludes land, buildings, telecommunication towers, and pipelines laid outside the factory premises.

Issue 2: Common Head Office for Multiple Taxpayers
The applicant queried whether a common head office can be used for more than one taxpayer under GST, given separate factory addresses. The Authority concluded that this procedural question falls outside the scope of Advance Ruling as per Section 97(2) of the CGST Act. Thus, no ruling was provided on this matter.

Issue 3: Time Period for Interest on Delayed Refunds
The applicant asked if the 60-day period provided under Section 56 of the CGST Act, 2017, for interest on delayed refunds, is calculated from the date of filing the application for refund to the date of credit of the refund amount in the taxpayer's bank account. The Authority confirmed that the 60-day period is indeed from the date of filing the application for refund to the date the refund amount is credited to the taxpayer's bank account, as clarified in Circular No. 125/44/2019-GST dated 18.11.2019.

Ruling:
1. ITC on the inward supply of structural support for plant and machinery used for making outward supplies is admissible to the extent specified.
2. The question regarding the use of a common head office for multiple taxpayers is outside the scope of Advance Ruling.
3. The 60-day period for interest on delayed refunds is from the date of filing the refund application to the date the refund amount is credited to the taxpayer's bank account.

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