AI Drafter 
TaxTMI 
TaxTMI 
2024 (8) TMI 378
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....greement? c) In case the applicant is liable to pay Goods and Services Tax (GST), whether the applicant can claim and utilise the CGST and SGST paid at the instance of procurement of the solar power plant as input tax credit for payment of the GST liability as per Sr. No. a) and b) above? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression GST Act' would mean CGST Act and MGST Act. 1) FACTS AND CONTENTION-Submitted by Applicant. 11. The applicant is a company registered under the Companies Act, 2013. 1.2 Applicant is engaged in production of Electrical Energy through its solar power plant located at Village Nagansur, Taluka Akkalkot, District Solapur, Maharashtra. 1.3 During the period August 2022 till 27 March 2023 the company has incurred an expenditure of Rs. 17,60,43,174/-(including SGST Rs. 1....
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....L) accepts the delivery of the electrical energy at the pooling sub-station of Shree Swami Samarth Solar Green Energy LLP which is connected to the MSEDCL grid IV MSEDCL delivers the electrical energy to the ultimate consumer viz. Kores India Limited, Chakan, Pune through its own transmission and distribution infrastructure V The electrical energy is sold by the applicant to M/s. Phillip Commodities Private Limited which in turn is sold by Phillip Commodities Private Limited to M/s. Kores India Limited through the Grid Connectivity of MSEDCL. As explained above M/s. Phillip Commodities Private Limited is an authorised trading partner as registered with the Central Electricity Regulatory Commission of India. c) Business structure On a careful analysis of the notification as above and the agreement entered with the customer, it can be concluded that the applicant is involved in two different business as follows: Sr. No. Description Taxability under GST HSN /SAC Code 1 Production of electrical energy Exempt 271600 Electrical Energy 2 Transmission and distribution of electricity Taxable 996911-Electricity Transmission Servi....
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....nt is not eligible to utilize the CGST/SGST/IGST paid the instance of procurement of the solar power plant. Section 17 (2) is reproduced below for ready reference:- "Section 17. Apportionment of credit and blocked credits:- (1)... (2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rate supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rate supplies. " (3) Rules 42 & 43 of CGST rules 2017-provide that the Applicant is not entitled to Input Tax credit as its all out put supplies are Exempted from tax. (4) There is no proceedings pending or decided against the applicant under any provisions of The GST Act 2017 as on date. 4. HEARING Preliminary hearing in the matter was held on 09.05.2024. Mr. Narendra K. Patil, C.A. Appeared, and requested for admission of the application Jurisdictional Officer Mr. A.S. Jagdale, STO PUN-VAT-C-819 also appear....
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....tal 13,46,424 5.1.3) The Electrical Energy generated by Applicant is delivered at the pooling sub-station of Shree Swami Samarth Solar Green Energy LLP. The role of the applicant ends at this point. The Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) accepts the delivery of the electrical energy at the pooling sub-station of Shree Swami Samarth Solar Green Energy LLP which is connected to the MSEDCL grid. 5.1.4) Billing of exported units is be done on main meter (22004263) installed at 33/11kv Nagansur Sub-station on percentage basis & Auxiliary supply will be billed on consumer end metering: 23001435, as actual at park end.7) MSEDCL does not charge "Transmission and distribution charge" to the Applicant. 5.1.5) The electrical energy is sold by the applicant to M/s. Phillip Commodities Private Limited which in turn is sold through power purchase agreement executed on 09.02.2023 between Phillip Commodities Private Limited to M/s. Kores India Limited (hereinafter referred as "End Consumer"), Itd situated at (G.N.149, Chakan, Talegaon road, Tal. Khed, Dist. Pune-410501.), through the Grid Connectivity of MSEDCL. 5.1.6) MSEDCL delivers the electrical energy ....
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....d Units (KWH) 0 Banked Offset Units (KWH) 52,406 5.1.8 Observation-In this invoice issued by Mahavitran to M/s. Kores (India) Limited Chakan Foundry (end consumer) has charge transmission charges it Rs. 18,86,265/-and operating charges at Rs. 60,730/. Relevant portion of the bill of supply are reproduced as under: Maharashtra State Electricity Distribution Co. Ltd. Bill of Supply Circle Pune Rural Circle Bill Month Mar-2024 Consumer Name M/s. Kores (India) Ltd Chakan Foundry DN Consumer Number 176099030420 Address Plot No. J2 S-Block, Pimpri, 411026 Bill for MSEDCL Consumption Rate Amount Rs. Demand Charges 499.00 23,71,747.00 Energy Charges KVAH Units: 677001 8.12 54,97,248,.00 FAC Charges @ 0.35 51,223.90 ......................... Bill for Open Access Rate Amount Rs. Electricity Duty 0.1800 1,21,142.34 Wheeling Charges ([email protected]) 11,31,759.00 Transmission Charges 18,86,265.00 Operating Charges 60,730.00 5.2 Based on this fact the applicant has raised following questions as....
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....ding. [Explanation.-For the purposes of this sub-section, the expression" value of exempt supply" shall not include the value of activities or transactions specified in Schedule III, except those specified in paragraph 5 of the said schedule." 4) Rule 42. "Manner of determination of input tax credit in respect of inputs or input services and reversal thereof-(1) The input tax credit in respect of inputs or input services, which attract the provisions of sub-section (1) or sub-section (2)of section 17, being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies, shall be attributed to the purposes of business or for effecting taxable supplies in the following manner, namely:- ......." 5) Rule 43- "43.Manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases.-(1) Subject to the provisions of sub-section (3) of section 16, the input tax credit in respect of capital goods, which attract the provisions of sub-sections (1) and (2) of section 17, being partly used for the purposes of bus....