TaxTMI 
TaxTMI 
2022 (6) TMI 757
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....ft India Private Ltd., F-668 to 670,9F2, V.K.I. Area, Jaipur-302013, Rajasthan (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (d) &. (e) given as under: (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both. A. SUBMISSION OF THE APPLICANT: (in brief) • M/s. Crown Craft india Private Limited., F-668,670 9F2, VKI Area, Jaipur (herein after also called as the "applicant") (Registration No. 08AAACC6867C1ZP) are engaged in the manufacture of (i) Thermocol, (ii) PET Bottles, (iii) Tableware, Kitchenware & Tiffin, (iv) Toilet ware and Plastic casserole, (v) Steel ware Household, (vi) Plastic Chair and (vii) Flask with inner steel falling under chapter heading Nos. 392190, 392330, 392410, 392490, 732393, 940370 & 961700 respectively. They are availing Input Tax credit on Capital Goods, Inputs as well as Input services used in or in relation to manufacture of our final product as per the provisions of GST Act. 2017 and rules made thereunder. • They are having their manufacturing unit sit....
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....and regulation are as under: 1. Since our present and new unit (situated within the Rajasthan state) would have same GSTIN therefore sending goods/ raw material/ capital goods from one unit to other would not comprise supply of goods or services. In such circumstance would we require to pay GST on such movement of goods/raw material/ capital goods? Interpretation: We understand that in our case the goods and raw material would move between our one factory to another for the purpose of further working on the semi-finished goods, packing or for consolidation of supply to our ultimate buyer. Since both units would be working under same GSTIN therefore such movements cannot be termed as supply under the provisions of GST Act, 2017. In such circumstances such movement would not fall under "supply of goods" as there is total absence of recipient of the goods other than our self. Therefore, no liability of GST would arise for such movement of goods or capital goods between two units within the state and working under same GSTIN. 2. If we have to issue challan for transfer of goods from one unit to other what value is to be considered for E-way bills if that is to be issued? ....
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.... In view of the answer for the question No. 3 above we understand that the E-way bill would be required to be issued in accordance with the provisions of Job work as well as the provisions of E-way bills. 5. How will would have to deal with the ITC available for each unit? We understand that since the two units would have same GSTIN then in such case we would have to maintain single ITC credit and the same would be used for discharge of our GST liability irrespective of the clearance of goods from either of the factory. Thus, can we use ITC for the goods/raw material/capital goods received in one factory for payment of GST for the clearance made from second unit? As per section 16 (1) of the C.G.S.T. Act, 2017 the provisions of Input Tax credit are as follows; (1) Every registered person shall, subject to such condition and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course of furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. From t....
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.... would have to mentioned for the clearances of the goods. We understand that we would have to maintain two sets of invoices for each unit respectively. Goods sent from one factory would have to be issued or cleared with the respective invoice mentioning the address of the particular unit from where the goods are being cleared. B. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:- 1. Since our present and new unit (situated within the Rajasthan state) would have same GSTIN therefore sending goods/ raw material/ capital goods from one unit to other would not comprise supply of goods or services. In such circumstance would we require to pay GST on such movement of goods/raw material/ capital goods? 2. If we have to issue challan for transfer of goods from one unit to other what value is to be considered for E-way bills if that is to be issued? 3. In respect of movement of raw material/capital goods/ semi-finished goods for further processing would the provisions ot job-work apply or we can send these goods on simple internal challan? 4. In respect of the above situation in question No. 1, would we require to issue E-way bill for such movement of goods from our one uni....
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....n respect of the above situation in question No. 1. would we require to issue E-way bill for such movement of goods from our one unit to other if the value of the goods to be moved is higher then the threshold limit required for issue of E-way bill in normal course. Ans.: E way bill is required to be issued as per the rule 138 of the RGST. 2017. 5. How will would have to deal with the ITC available for each unit? We understand that since the two units would have same GSTIN then in such case we would have to maintain single ITC credit and the same would be used for discharge of our GST liability irrespective of the clearance of goods from either of the factory'. Thus, can we use ITC for the goods/raw material/capital goods received in one factory for payment of GST for the clearance made from second unit? Ans.: Yes, ITC can be used for goods/raw material/capital goods received in one factory for payment of GST for the clearance made from second unit? 6. For purchase of raw material/ capital good do we have to order and mentioned separate factory address? Ans.: Yes, separate factory address have to be mentioned in purchase invoice. ....
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....an send these goods on simple internal challan? 4) In respect of the above situation in question No. I, would we require to issue F.-way hill for such movement of goods from our one unit to other if the value of the goods to be moved is higher then the threshold limit required for issue of E-way bill in normal course. 5) How will would have to deal with the ITC available for each unit? We understand that since the two units would have same GSTIN then in such case we would have to maintain single ITC credit and the same would be used for discharge of our GST liability irrespective of the clearance of goods from either of the factory. Thus, can we use 11C for the goods/raw material/capital goods received in one factory tor payment of GST tor the clearance made from second unit? 6) For purchase of raw material/ capital good do we have to order and mentioned separate factory address? 7) For invoice of clearance of goods does the applicant have to mention both addresses or the address of the concerned unit from which the goods are cleared? 4. We will take up all the above questions for discussion one by one. The first question pertains to registrat....
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....ment, has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons for the purposes of this Act. In view of above, we are of the view that as per Sub-Section (2) of Section 25 of the CGST Act, 2017, where a person has multiple establishment in a state, in such a case he shall be liable to take single registration in the state by adding establishment as additional place of business. However, a person having multiple places of business in a State or Union territory may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed. GST is a state specific tax i.e. there is no concept of centralized registration under the GST regime. One needs to take registration in every state from wherever he is engaged in making taxable supply of goods or services or both. Where a person has multiple branches in a state, in such a case he shall be liable to take single registration in the state by adding branches as additional place of business. It will be done by showing one of the two place of business as principal place of business and other as additional place....
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....s if that is to be issued for transfer of goods from one unit to other. In this regard, legal relevant provisions are as under:- E-WAY RULES The provisions related to 'E-way bill' is described in the Rule 138 of the CGST Rules, 2017. As per sub rule (1) of Rule 138 of the said Rules, every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees,- (i) in relation to a supply; or (ii) for reasons other than supply; or (iii) due to inward supply from an unregistered person, shall, before commencement of such movement, furnish information relating to the said goods as specified in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal. Explanation 2.- For the purposes of this rule, the consignment value of goods shall be the value, determined in accordance with the provisions of section 15, declared in an invoice, a bill of supply or a delivery challan, as the case may be, issued in respect of the said consignment and also includes the....
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....published in the Gazette of India, Extraordinary, Part Il, Section 3, Sub-section (i), vide number G.S.R 679(E)dated the 28th June, 2017 as amended from time to time and notification No. 26/2017- Central Tax (Rate), dated the 21st September, 2017 published in the Gazette of India, Extraordinary, Part Il, Section 3, Sub-section (i), vide number G.S.R 1181(E) dated the 21st September, 2017 as amended from time to time; (k) any movement of goods caused by defence formation under Ministry of defence as a consignor or consignee; (I) where the consignor of goods is the Central Government, Government of any State or a local authority for transport of goods by rail; (m) where empty cargo containers are being transported; and (n) where the goods are being transported upto a distance of twenty kilometers from the place of the business of the consignor to a weighbridge for weighment or from the weighbridge back to the place of the business of the said consignor subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with rule 55. (o) [where empty cylinders for packing of liquefied petroleum gas ....
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....n a supply of goods or services or both, within the meaning of that term. As per sub section (2) of the section 97 of the CGST Act, 2017, the applicant can seek the advance ruling on the questions as mentioned in the sub section (2) only. As the question No. 3 of the applicant does not fall under the category mentioned in the sub section (2) of the section 97 of the CGST Act, 2017 therefore, no answer is being given. 7. Now, we are required to discuss the fourth question of the applicant under which it is to decide whether applicant would require to issue E-way bill for such movement of goods from our one unit to other if the value of the goods to be moved is higher than the threshold limit required for issue of E-way bill in normal course. In this regard, we have to first examine whether the above question falls under the ambit of questions as mentioned in Section 97(2) or otherwise. 97. Application for advance ruling - (1) An applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and manner and accompanied by such fee as may be prescribed, stating the question on which the advance ruling is sought. ....
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.... that since applicant would be having single GST No. for both the units then as per the section 16(1) there would be only one ledger for the ITC credit. We are of the view that all eligible Input Tax Credit that is claimed by a registered person in the GST returns (GSTR-2 or GSTR-3B) reflects in Electronic Credit Ledger. Credit in Electronic Credit Ledger can be used only for payment of tax. The electronic credit ledger shall be maintained in FORM GST PMT-02 for each registered person eligible for input tax credit on the common portal and ever)' claim of input tax credit will be credited to this ledger. The amount available in the electronic credit ledger can be used for making any payment towards output tax. In the circumstances as mentioned in the question, applicant would be able to use the eligible credit of electronic credit ledger to discharge their GST liability for either of the unit. In other words, the applicant would be able to use the eligible credit of inputs and capital goods for payment of GST for the goods cleared from other unit as there is only one electronic ledger for the credit of both the units having same GST number. Hence, applicant would be able t....
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....uling is sought. (2) The question on which the advance ruling is sought under this Act, shall be in respect of,- (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input lax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. As per sub section (2) of the section 97 of the CGST Act, 2017, the applicant can seek the advance ruling on the questions as mentioned in the sub section (2) only. As the question No. 7 (Seventh) of the applicant does not fall under the category mentioned in the sub section (2) of the section 97 of the CGST Act, 2017 therefore, no answer is being given. 11. In view of the extensive delibera....