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TMI Blog2019 (5) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such Appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed thereunder, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the Application 1.1 The Applicant is engaged in the manufacturing and retailing of jewellery and articles made of gold, silver, platinum, diamonds and other precious stones under the brand name "Senco Gold & Diamonds". Apart from his own retail stores, the Applicant also maintains a network of franchisee-operated stores. He grants such a franchis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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." 2.2 The Applicant argues that apart from the above proviso, the GST Act nowhere makes availing of input tax credit dependent upon the payment to be made for the inward supply. The captioned proviso also does not prescribe or restrict the mode in which the payment has to be made. The Applicant submits that payment through adjustment of the books of accounts is a prevalent commercial practice. Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be deemed to be the date of deposit in the electronic cash ledger. 3.2 According to the concerned officer, the above provisions make it clear that all transactions of the supplier and the recipient should be made through the online banking system. Therefore, the recipient is ineligible to claim credit of input tax if the payment is made by way of book adjustment instead of through any banking channel. 4. Observation & Findings of the Authority 4.1 Section 49(1) deals with the manner in which the supplier shall make payment of tax, interest etc. to the Government to be credited to his electronic cash ledger. The Applicant has made no submission that he intends to deposit tax to the Government in any other manner. 4.2 Section 49(2) prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et to the payee for discharging an obligation arising out of transactions involving goods, services or other legal obligations. The most common asset class used for such payment is money, although other assets unless specifically excluded by law, may be used provided the payee accepts payment by such assets other than money as good and sufficient discharge of the obligation. Of course, in the payer's books of accounts, such transfer will be reported as a reduction in the book value of the asset being transferred. 4.5 In the present context, 'consideration', as defined under section 2(31), provides the scope and ambit for modes of payment. It includes, in relation to the supply of goods or services, any payment, made or to be made, whether ..... X X X X Extracts X X X X X X X X Extracts X X X X
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