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TMI Blog2019 (10) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 97 of CGST Act, 2017 & KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a Private Limited Company and is registered under the Goods and Services Tax Act, 2017. The applicant has sought advance ruling in respect of the following question: Whether the applicant is eligible to claim the GST Input tax credit on the items purchased for furtherance of business? 3. The applicant furnishes some facts relevant to the stated activity: a. The applicant states that they are into the business of manufacturing decorative paints meant for interiors as well as exterior surfaces and have three manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny paint company to market their products. Painter is similar to middleman between customer and dealer/ company. Customers always tend to listen to painters, as they feel that the painter is well versed about the quality of paint technically. Therefore, most of the paint companies incentivize these painters to make their presence in the market. To capture each of the painter's purchase, in general, every company introduces paint scheme. Whenever paint is marketed through a painter then details of such painter is tracked through a scheme called "Painter Scheme". Once in a given period, the points accumulated by each of the painters are computed and compensated them suitably (according to their liftings) by way of giving them promotional item ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 5.3 The Applicant seeks advance ruling on the question that Whether the applicant is eligible to claim the GST Input tax credit on the items purchased for furtherance of business. 5.4 The business/ transactions of the applicant are examined and observed that they supply paints, manufactured by them, to persons on discharging applicable GST thereon. The applicant is claiming input tax credit of tax paid on the raw materials and any other input materials/ c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , whether or not in the course or furtherance of business, It is an admitted fact that the applicant herein purchases the items to be disposed as gifts under various incentive schemes to dealers/ painters etc.. Therefore the applicant is not entitled to avail ITC on such items. 5.8 Further, at times the applicant also offers foreign and local trip schemes as incentives, for which they procure various tax suffered services. The free travel services so provided are without any consideration and hence do not qualify to be a "supply" in terms of Section of the CGST Act 2017 and Schedule 1 to the CGST/KGST Act 2017. 5.9 In this regard we draw attention to the Circular No.92/11/2019-GST dated 07.03.2019, issued by the CBIC, wherein, at para (A) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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