9911796707
TMI Blog2020 (4) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... it is clear that a registered person is entitled to take credit of input tax charged on 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 only - In that case, the applicant is incurring expenses for providing common facilities to their employees within the residential colony where the quarter has been given on nominal fees i.e. Hospitals, Sports Complex, garden, Guest House for official visitors and school for employee s children and the same is not related to furtherance of their business/output service i.e. port service. Also, the applicant is engaged in supply of port services to various clients. Said expenses are for providing common facilities to their emplo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l basis. They also purchase movable medical equipment at hospital. They are also paying for AMC for repair and maintenance of residential colony, hospitals and school (other than new constructions). They are also providing telephone mobile facility at residence of officers and at hospitals. They are also paying for caretaking /housekeeping services at Guest House. 3. The Applicant, vide Annexure-I of their application dated 23.03.2018, has sought for advance ruling for eligibility of Input Tax Credit (ITC) with respect of below mentioned specific expenses occurred by the applicant:- a. Purchase of medicines for employees as prescribed by their doctor from outside on contractual basis. b. Purchase of movable medical equipment a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itional Commissioner, Central Goods and Services Tax, Kutch (Gandhidham), vide their letter dated 12.04.2018 submitted that the activity/services in respect of which an advance ruling has been sought is an ongoing activity and as per record available and facts in notice, there are no such cases pending/decided in GST regime. Further, he has submitted that Section 16 of the CGST Act, 2017 which relates to eligibility and conditions for taking input tax credit. Sub section (1) of Section-16 of CGST Act, 2017 provide that 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sub Section (1) of Section 17 of the CGST Act, 2017, the applicant is not entitled to take credit of input tax charged in respect of above mentioned expenses as the same is not used in furtherance of their business. 5. We also find that the applicant is engaged in supply of port services to various clients. Said expenses are for providing common facilities to their employees within the residential colony and the same are not relates to furtherance of their business/output service i.e. Port Service . It is very clear from the provisions of Sub Section (1) of Section 16 and Sub section (1) of Section 17 of the CGST Act, 2017, that a registered person is entitled to take credit of input tax charged on supply of goods or services or both t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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