2017 (10) TMI 255 - SC - GST

Input tax credit under the Central Goods and Services Tax Act, 2017 - e-auction - whether lessee can claim input tax credit? - Held that - the G.S.T. payable on the sale value of the mineral purchased in the e-auction shall be paid by the buyer directly to the lessee and the lessee would be responsible for all compliances as may be required under Act - the Monitoring Committee directed to prepare appropriate proforma and also take steps for carrying proper Tax Identification Number of the respective lessees on the invoices as may be required.

Summary

Issues:
1. Input tax credit under the Central Goods and Services Tax Act, 2017 for mineral purchased in e-auction.
2. Contradictory stand by the Union of India regarding the ceiling/cap in applications filed by the Ministry of Steel and Mines.

Analysis:
1. The Supreme Court directed the Monitoring Committee to facilitate lessees in claiming input tax credit under the Central Goods and Services Tax Act, 2017 for minerals purchased in e-auctions. The court specified that the GST payable on the mineral sale value should be paid directly by the buyer to the lessee, who would be responsible for all necessary compliances. The Committee was instructed to prepare appropriate proforma and ensure proper Tax Identification Numbers on invoices for lessees.

2. Regarding the contradictory stands presented in applications by the Union of India through the Ministry of Steel and Mines, the Court sought clarity on the Union's precise stance and prayer concerning the ceiling/cap issue. The Union was directed to file the necessary application clarifying their position before the next hearing scheduled for 10th October, 2017. Various other applications related to the case were also listed for specific dates in October for further consideration and proceedings.