2023 (12) TMI 888

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....under the CGST Act and the SGST Act. 1.0 The Applicant having assigned with GSTIN 21AAACN7449M1Z9 has sought advance ruling in respect of the following question: Whether Compensation Cess paid by the Applicant on purchase of Coal which remained as unutilized ITC in the electronic credit ledger, continues to be available to the Applicant or the Applicant is required to reverse the same? 1.1 At the outset, we would like to make it clear that the provisions of both the CGST Act and the OGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the OGST Act. 2.0 Submission of the Appl....

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....roducts as the same are non-schedule goods under GST (Compensession to States) Act, 2017. 2.3 In addition to the above, the proviso to Section 11 of the GST (Compensation to States) Act, 2017 mandates that input tax credit in respect of Compensation Cess levied on inward supply of goods and services, shall be utilized only towards payment of said Cess on outward supply of goods and services. 2.4 The Applicant, in accordance with Section 11 of the GST Compensation Act, 2017 read with Section 16 of the CGST Act, 2017 was availing input tax credit of the Cess paid on the domestic procurements of Coal. However, due to the restriction of utilization of input tax credit of Compensation Cess as provided under the Proviso to Section 11 of the GST....

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....lication of the Applicant along with the submission made thereon. The question before us is as below: "Whether Compensation Cess paid by the Applicant on purchase of Coal which remained as unutilized ITC in the electronic credit ledger, continues to be available to the Applicant or the Applicant is required to reverse the same?". 4.1 Before proceeding to arrive as a conclusion, we need to discuss the relevant provision of Section 97 of the CGST Act, 2017. Sub-section 2 of Section 97 provides an exhaustive list of issues/questions on which an advance ruling can be sought under the GST Act. The questions shall be in respect of - (a) classification of any goods or services or both; (b) applicability of a notification issued under the GS....