TaxTMI 
TaxTMI 
2021 (11) TMI 1130
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....ST @ 5% (i.e. CGST 2.5% and SGST 2.5%). They have taken such Buses on rent from another service provider. Such service provider issued them bill of rent for such buses along with GST @IS% (i.e. CGST 9% and SGST 9%) and GST is separately mentioned in his rent bill. As per Sr.No.8(vi) of Notification No. 11/2017-CT (Rate) Dated 28.06.2017 in case of "Transport of passengers by any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient", GST Rate is 5% (i.e. CGST 2.5% and SGST 2.5%). Also a condition mentioned is that "Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business. (i.e. service procured from another service provider of transporting passengers in a motor vehicle or renting of a motor vehicle), has not been taken". The applicant seeks advance ruling regarding the availability of input tax credit of GST@ 18% (i.e. CGST 9% and SGST 9%) on the Rent bill issued by the service provider who has given him Buses on rent? 3. Contentions of the applicant: -The applicant is of the opin....
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....lates that:- 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 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: (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. Further 103 of CGST Act, 2017 stipulates about the ruling pronounced as under: - The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only- a. On the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ruling; b. On the concerned officer or the jurisdictional officer i....
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.... service recipient as also notification No. 11/2017-CT (Rate) dated 28/06/2017. 5.6 Nature of Service of the Applicant (Service Recipient):- On going through the HSN details provided in the registration profile it is seen that the applicant M/s Abhay Singh Gill, Raipur, Chhattisgarh" GSTIN-22BAJPG2742P1ZL has classified their services under HSN Code-996411 [service provision of local land transport services of passengers by railways , metro, mono rail, bus, tramp way, services autos, three wheelers, scooters and other motor vehicles] and under HSN Code-996422 [long distance transport services of passengers through road by bus, car, non scheduled long services distance bus and coach services, stage carriage etc.] Nature of Service of the Service Provider:-The service provider M/s. Gappu Mahendra Travels Pvt. Ltd. Raipur Chhattisgarh GSTIN: 22AACCG9478P1ZX is engaged in the business of travel agents (other than air /rail travel agents) (HSN code -00440294), Passenger transport services (HSN code -9964) and rental services of road vehicles including buses, coaches, cars, trucks and other motor vehicles, with or without operators (HSN code -996601). As informed by the applicant, ....
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....gned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988); (b) "stage carriage" has the meaning assigned to it in clause (40) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988); (c) "radio taxi" means a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS). 2.5 Provided that credit of input tax charged on goods or services used in supplying the service has not been taken [Please refer to Explanation no. (iv)) (iii) Transport of passengers, with or without accompanied belongings, by air in economy class. 2.5 Provided that credit of input tax charged on goods used in supplying the service has not been taken [Please refer to Explanation no. (iv)] (iv) Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport, as notified by the Ministry of Civil Aviation. 2.5 Provided that credit of input tax charged on goods used in supplying the service has not been take....
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....n No. 31/2017-C.T. (Rate), doted 13-10-2017 as under:- CGST rates for supply of services modified - Amendment to Notification No. 11/2017-C.T (Rate) In exercise of the powers conferred by sub-section (1) of section 9, subsection (1) of section 11, sub-section (5) of section 15 and sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 11/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II Section 3, Sub-section (i), vide number G.S.R.690 (E), dated the 28th June, 2017, namely :- In the said notification, (a).................................. (b)................................ (c) against serial number 8, for item (vi), in columns (3), (4) and (5) and the entries relating thereto, the following shall be substituted, namely : - (3) (4) (5) "(vi) T....
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....ake 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 or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless, - (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other taxpaying documents as may be prescribed; [(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;] (b) he has received the goods or services or both. [Explanation. -For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services- (i) where the goods are delivered by the supplier to a recipie....
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....ate of furnishing of the return under section 39 for the month of September, 2018 till the due date of furnishing of the return under the said section for the month of March, 2019 in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18, the details of which have been uploaded by the supplier under sub-section (1) of section 37 till the due date for furnishing the details under sub-section (1) of said section for the month of March, 2019.] 5.11 However, for the availment of input tax credit (ITC), as provided supra, there are exceptions / exclusions prescribed under Section 17 (5) of the CGST Act, 2017 which provides as under: - (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely: - ((a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely: - (A) further supply of such motor vehicle....
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.... credit is as per the provisions contained under Section 16 subject to the restrictions as stipulated supra under Section 17 of the CGST Act, 2017. It appears that the applicant is under the misplaced notion that eligibility of Input Tax Credit is governed under the provisions of Notification no. 11/2017-CT(Rate) dated 28.6.2007 as amended, whereas it is not so, in as much as non-availment of ITC is a pre-condition for availing the benefit of applicable tax rate for the services rendered by the applicant as provided under the said Notification. On the contrary eligibility to Input tax credit is governed by the provisions as contained under Chapter V relating to Input Tax credit vide section 16 and section 17 of the CGST Act, 2017 and this eligibility to ITC has nothing to do with Notification no. 11/2017-CT(Rate) dated 28.6.2017. For the impugned "Passenger transport services "of Heading 9964, viz. "Transport of passengers by any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient", in as much as eligibility to the tax rate as stipulated under sr. no 8(vi) of Notification no. 11/2017-CT(Rate) dated 28....