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TMI Blog2019 (7) TMI 848X X X X Extracts X X X X X X X X Extracts X X X X ..... on 13(2) of the IGST Act, 2017 which is the location of the recipient of the service i.e. outside India. Since the place of supply of service is outside India, condition (iii) under Section 2(6) of the IGST Act, 2017 is also fulfilled. Hence the service provided by the applicant falls within the definition of export of service as defined under Section 2(6) of the IGST Act, 2017. Whether the applicant is eligible to take refund of the unutilized input tax credit or not is determined as per the provisions of Section 16 of the IGST Act, 2017 and Section 54 of the CGST Act, 2017? - HELD THAT:- The Government of India vide Notification No. 1-2016/Customs dated 04th Jan 2016 reduced the rate of export duty on Iron Ore Pellets from 5% to Nil. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the business of mining, ship building, ship repair and pelletisation. The applicant has a pelletisation plant for the manufacture of iron ore pellets using high-grade iron ore. The applicant proposes to enter into a contract with a non-resident party for rending service of conversion of iron ore into pellets. The non-resident will arrange for iron ore from abroad and the same would be imported in India by the applicant using its own GSTIN, though the iron ore shall always remain the property of the non-resident. The applicant will carry out the job work of conversion of the iron ore into pellets at their plant in Shiroda Goa by adding necessary condiments such as lime stone, Bentonite, coke breeze etc. All these items will be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f IGST Act and 54(3) of CGST Act. The point-wise reply to the applicant's queries is as follows - Point No. 1 2: The applicant is liable to pay IGST or not is determined as per the provisions of Section 5(1) of the IGST Act, 2017 which reads as under: (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the Integrated Goods and Services Tax on all inter-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act and at such rates, not exceeding forty per cent., as may be notified by the Government on the recommendations of the Council and coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich reads as under- (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 the input tax charged on any supply of the 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. Since the imported goods are used in the furtherance of business, the applicant is eligible to take input tax credit of IGST paid on import of the iron ore. Point No.4: Export of service is defined under Section 2 of IGST Act, 2017. As per the provisions of Section 2(6) of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business, the place of supply shall be the location of the supplier of services. (3) The place of supply of the following services shall be the location where the services are actually performed, namely:- (a) services supplied in respect of goods which are required to be made physically available by the recipient of services to the supplier of services, or to a person acting on behalf of the supplier of services in order to provide the services: Provided further that nothing contained in this clause shall apply in the case of services supplied in respect of goods which are temporarily imported into India for repairs or for any other treatment or process and are exported after such repairs or treatment or pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder. The provisions of Section 54(3) of the CGST Act, 2017 reads as under: (3) Subject to the provisions of sub-section (10), a registered person may claim refund of any unutilised input tax credit at the end of any tax period: Provided that no refund of unutilised input tax credit shall be allowed in cases other than- (i) zero-rated supplies made without payment of tax; ..... X X X X Extracts X X X X X X X X Extracts X X X X
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