AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (3) TMI 260
X X X X Extracts X X X X
X X X X Extracts X X X X
....d supply of services by way of License Fee Recovery (LFR) on leasing of pumps along with the equipment. 3.2. The rate of tax applicable on the inward supply of services of leasing of pumps along with the equipment. 4. Contentions of the Applicant: 4.1. The applicant is registered under the GST Act and engaged in retail business of petrol and petroleum products. They are receiving services from the oil manufacturing companies by way of leasing of pumps and equipment such as petrol tank and dispenser. The applicant sought advance ruling on the admissibility of input tax credit against the tax paid on receipt of these services from the supplier Hindustan Petroleum Corporation Ltd; since the output tax liability on the outward supply of petrol and diesel has been kept under abeyance. 4.2. The applicant states that as per Section 9(2) of CGST Act the central tax on the supply of petroleum crude, high speed diesel, motor spirit or petrol, natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council. Therefore, the above-mentioned goods are liable to tax but are presently kept out of the pur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ther, as per Section 103(1) of the CGST Act such an Advance Ruling is binding only on the applicant and on the officer concerned or the jurisdictional officer in respect of the applicant. 7.5. Section 97 of the CGST Act specifies the subjects on which an application for advance ruling can be made. Section 97 of the CGST Act reads as follows: (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. (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 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vices or both the supplier of such goods or services and their jurisdictional authority is not bound by that ruling and the supplier and their jurisdictional authority is free to assess the supply according to their own determination and the ruling has no relevance or applicability. Therefore, the second question is not admissible. 7.10. The applicant is a Petrol Pump operator. The oil marketing company Hindustan Petroleum Corporation Ltd has authorized the applicant for retail sales of petrol and diesel on the basis of leasing agreement. The oil marketing company collects GST on the value of services provided to the applicant by the way of LFR. The supplies made by the applicant include petrol and diesel that are not subject to levy of GST and lubricating oil and other supplies that are subject to the levy of GST. 7.11. Sections 16 to 18 of the CGST Act, 2017 enumerates the circumstances in which ITC is allowed and the conditions, limitations and the procedures subject to which the ITC can be availed. 7.12. Section 16 of the CGST Act, 2017 which prescribes the eligibility and conditions for availing input tax credit reads as follows; "SECTION 16. Eligibility and conditions fo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed: Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon. (3) Where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under the provisions of the Income-Tax Act, 1961, the input tax credit on the said tax component shall not be allowed. (4) A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the thirtieth day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the releva....
X X X X Extracts X X X X
X X X X Extracts X X X X
....7 that the central tax on the supply of petroleum crude, high speed diesel, motor spirit or petrol, natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council the supply of petrol and diesel cannot be considered as exempt supply. 7.16. The term "exempt supply" is defined in clause (47) of Section 2 of the CGST Act, 2017 as follows; "exempt supply" means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section I 1, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply." 7.17. The term "non-taxable supply" is defined in clause (78) of Section 2 of the CGST Act, 2017 as follows; "non-taxable supply" means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act." 7.18. In view of the provisions of sub-section (2) of Section 9 of the CGST Act, 2017 the levy of GST on the supply of the five petroleum products namely; petroleum crude, high speed diesel, motor spirit or petrol, natural gas and aviation t....