TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 728
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....ation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s. MRF Limited, Arakonam - Tiruttani Road, Ichiputhur, Arakonam, Tamil Nadu-631 003 (hereinafter called as the "Applicant") are registered under the GST Act with GSTIN 33AAACM4154G1ZU. The Applicant has made a payment of application fees of Rs. 5,000/- each under sub rule (1) of Rule 104 of CGST Rules, 2017 and SGST Rules, 2017. 2. The applicant has sought advance ruling on the following questions : 1) Whether the Applicant can comply with the amended provision of section 2(61) and section 20 of the CGST Act, 2017 as amended by notification 16/2024-Central tax dated 6th August 2024 by following the procedure as stated at para 12 a) to 12 d) of th....
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....ll as 'Principal Place of Business' in the ISD registration Certificate bearing No. 33AAACM4154G2ZT. MRF HO is receiving many common input services such as Advertising, Auditing, Banking, Annual Maintenance Contract, Manpower recruitment, Consultancy, Repair & Maintenance etc. which are attributable to and consumed at different States including Tamil Nadu (more than one location or at all locations). 4.2 The suppliers of all such common input services are issuing their GST Invoice to MRF HO mentioning the GST Registration No. 33AAACM4154G1ZU i.e., the Regular GST Registration Number of the Applicant. MRF HO is currently booking the cost of all such common input services in MRF HO books and charging to the concerned States, to which such services are pertaining to, by raising Tax Invoices under Section 31 of the CGST ACT to the concerned States proportionate to or attributable to such services by them added with 2% mark-up value towards cost of functional expenses of MRF HO by way of entering into a Memorandum of Undertaking (MoU) to do so between the MRF HO and all the MRF State Branch locations. 4.3 In this regard, the Applicant refers to Board's Circular bearing Ref. No. 19....
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....after referred to as the Central Goods and Services Tax Act), in Section 2, for clause (61), the following clause shall be substituted, namely:- (61) "Input Service Distributor" means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20. Section 12. Substitution of Section 20 For section 20 of the Central Goods and Services Tax Act, the following section shall be substituted, namely :- "20. Manner of distribution of credit by Input Service Distributor. (1) Any office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, shall be required to be registered ....
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....radeep Sawant, Deputy General Manager, GST appeared for the personal hearing as the authorized representatives (AR) of M/s. MRF Limited. The AR reiterated the submissions made in their application for advance ruling. 5.2 They explained that they are holding GST Registration for the state of Tamilnadu as well as ISD Registration for distribution of ITC availed on common input services to the respective states. However, MRF Head Office has been distributing eligible ITC relating to common input services attributable to one or more States by issuing GST invoices under Section 31 of CGST Act to the respective States following Cross Charge Mechanism. They reiterated that they have been following the above procedure as clarified by Board vide Circular no. 199/11/2023-GST dated 17.07.2023. However, with the amendment to Section 2(61) and Section 20 of CGST Act vide Notfn. 16/2024-CT dated 06.08.2024, they have implemented the distribution of common ITC through the ISD mechanism with effect from April 2025. They explained that they require clarification as to the applicability of Rule 54(1A) of CGST Rules, 2017 which enables the transfer of common ITC from the regular GST registratio....
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....a) A registered person, having the same PAN and State code as an Input Service Distributor, may issue an invoice or, as the case may be, a credit or debit note to transfer the credit of common input services to the Input Service Distributor, which shall contain the following details:- (i) name, address and Goods and Services Tax Identification Number of the registered person having the same PAN and same State code as the Input Service Distributor; (ii) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters -hyphen or dash and slash symbolised as "-" and "/" respectively, and any combination thereof, unique for a financial year; (iii) date of its issue; (iv) Goods and Services Tax Identification Number of supplier of common service and original invoice number whose credit is sought to be transferred to the Input Service Distributor; (v) name, address and Goods and Services Tax Identification Number of the Input Service Distributor; (vi) taxable value, rate and amount of the credit to be transferred; and (vi). signature or digital signature of the regi....
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....credit of central tax or integrated tax charged on invoices received by him, including the credit of central or integrated tax in respect of services subject to levy of tax under sub-section (3) or sub-section (4) of section 9 paid by a distinct person registered in the same State as the said Input Service Distributor, in such manner, within such time and subject to such restrictions and conditions as may be prescribed. (3) The credit of central tax shall be distributed as central tax or integrated tax and integrated tax as integrated tax or central tax, by way of issue of a document containing the amount of input tax credit, in such manner as may be prescribed]. 6.7 We find that the amendment carried out in Section 11 of the Finance Act, (8 of 2024), 2024, has defined the Input Service Distributor as one who receives invoices of the input services and distributes the credit of such input invoices as prescribed under Section 20 of CGST Act, 2017. Amendment carried out in Section 12 of the Finance Act, (8 of 2024), 2024, has amended Section 20 of CGST Act, 2017 wherein the receiver of common input service invoices shall be required to be registered as Input Service Distr....