2019 (9) TMI 1120

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....hority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such Appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed thereunder, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the Application 1.1 The Applicant has set up a manufacturing facility for UHT milk, milkshake, curd and lassi. Some of the goods are taxable, and others exempted under the GST Act. Commercial production of UHT milk has been going on si....

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....om the date of the beginning of the commercial production. 2.2 Furthermore, rule 42 prescribes the manner of determination of input tax credit on input services and reversal thereof in cases like that of the Applicant. In terms of rule 42(1)(i) of the GST Rules, the amount of input tax credit attributable to exempt supplies shall be computed every month. After that, the input tax credit for the financial year shall be finally calculated in terms of rule 42(2) of the GST Rules before the due date for furnishing return for the month of September following the end of the financial year to which such credit relates. 2.3 In the Applicant's case, the commercial production of taxable goods started in December 2018. The commercial production of t....

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....ed 'Tc' for apportionment in accordance with rule 43(1)(e), (f) & (g) of the GST Rules. 3.2 The concerned officer from the Revenue further submits that input tax credit on input services should be apportioned in the manner prescribed under rule 42 of the GST Rules. The Applicant is eligible for credit of the entire input tax on input services till the production of exempted goods begins. 4. Observations and findings of the Authority 4.1 This Authority agrees with the concerned officer from the Revenue on the mechanism for apportionment of input tax credit on capital goods that were used for manufacturing taxable goods but are going to be used subsequently for production of both taxable and exempted goods. The amount of input tax on each ....

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....e useful life calculated from the date of invoice and reverse the balance amount. 4.3 The manner of apportioning the common credit of input tax [denoted by 'C-1' in rule 42(1)(h)] is prescribed under rule 42(1)(i), (j), (k), (I) and (m) of the GST Rules. The amount of the common credit attributable towards exempt supplies (D-1) is to be determined as below: D1=(E/F)*C2 where 'E' is the aggregate value of exempt supplies and 'F' is the total turnover in the State during the tax period. 4.4 In the Applicant's case, the commercial production of taxable goods started in December 2018. The commercial production of the exempt goods did not begin in 2018-19. The value of D1f therefore, is zero during the tax periods in 2018-19. No amount of t....