2023 (8) TMI 833 - AAR - GST

Input tax credit - GST paid on the inward supply of structural support of the plant and machinery that is used for making outward supply of the goods/services - common head office can be used for more than one taxpayer under GST having separate factory addresses or each applicant is required to be registered with separate head office - time period of 60 days provided under section 56 of the CGST Act, 2017 is for the period from the date of filing application for refund to the date of credit of the refund amount in taxpayer's bank account, or not - N/N. 13/2017-Central Tax, dated June 28, 2017. Whether, a common head office can be used for more than one taxpayer under GST having separate factory addresses or each applicant is required to be registered with separate head office? - HELD THAT - The purpose of Advance ruling is to provide certainty of tax liability in advance in relation to a future activity to be undertaken by the applicant and help the applicant in planning about GST liability on activities well in advance along with proper interpretation and understanding of tax laws thus the question which is related with procedure is out of scope of the ruling for Authority for Advance Ruling (AAR) which also not covered in Sec 97(2). Whether, ITC is eligible on the GST paid on the inward supply of structural support of the plant and machinery that is used for making outward supply of the goods/services? - Whether, as per Notification No. 13/2017-Central Tax, dated June 28, 2017; time period of 60 days provided under section 56 of the CGST Act, 2017 is for the period from the date of filing application for refund to the date of credit of the refund amount in taxpayer's bank account? - HELD THAT - As per sec 16 (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person applicant is eligible to take ITC on the inward supply used in the course or furtherance of his business but there is certain restrictions under Sec 17 of Act. Section 56 is related to Interest on delayed refunds - Thus, the time period of 60 days provided under Section 56 of the CGST Act, 2017 is from the date of filing of application for refund to the date of credit of the refund amount in taxpayer's bank account.

Issues Involved:
1. Eligibility of Input Tax Credit (ITC) on the GST paid on the inward supply of structural support of the plant and machinery.
2. Use of a common head office for multiple taxpayers under GST.
3. Time period for interest on delayed refunds as per Notification No. 13/2017-Central Tax.

Summary:

Issue 1: Eligibility of ITC on Structural Support
The applicant sought clarification on whether ITC is eligible on the GST paid on the inward supply of structural support for the plant and machinery used for making outward supply of goods/services. The Authority ruled that as per Section 16(1) read with Section 17(5)(d) of the CGST Act, 2017, ITC is admissible for structural supports that are used to fix plant and machinery to earth, provided they are used for making outward supplies. The definition of "plant and machinery" includes such structural supports but excludes land, buildings, telecommunication towers, and pipelines laid outside the factory premises.

Issue 2: Common Head Office for Multiple Taxpayers
The applicant queried whether a common head office can be used for more than one taxpayer under GST, given separate factory addresses. The Authority concluded that this procedural question falls outside the scope of Advance Ruling as per Section 97(2) of the CGST Act. Thus, no ruling was provided on this matter.

Issue 3: Time Period for Interest on Delayed Refunds
The applicant asked if the 60-day period provided under Section 56 of the CGST Act, 2017, for interest on delayed refunds, is calculated from the date of filing the application for refund to the date of credit of the refund amount in the taxpayer's bank account. The Authority confirmed that the 60-day period is indeed from the date of filing the application for refund to the date the refund amount is credited to the taxpayer's bank account, as clarified in Circular No. 125/44/2019-GST dated 18.11.2019.

Ruling:
1. ITC on the inward supply of structural support for plant and machinery used for making outward supplies is admissible to the extent specified.
2. The question regarding the use of a common head office for multiple taxpayers is outside the scope of Advance Ruling.
3. The 60-day period for interest on delayed refunds is from the date of filing the refund application to the date the refund amount is credited to the taxpayer's bank account.

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