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TMI Blog2021 (1) TMI 499X X X X Extracts X X X X X X X X Extracts X X X X ..... to an inward supply. Each of the clauses of section 17(5) of the GST Act describes the supply of a class of goods or services. The input tax credit shall not be available in respect of any of the supplies listed under the clauses (a) to (i). In other words, a taxable person cannot claim the input tax credit in respect of these supplies. A taxable person can claim the input tax credit in respect of a supply only if he is a recipient of the said supply. The clauses (a) to (i) of section 17(5) of the GST Act, therefore, in the context of the sentence that constitutes the said sub-section, and in relation to the taxable person claiming an input tax credit, can only refer to inward supplies of the goods and services. Each of these clauses begins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Goods and Services Act, 2017 or West Bengal Goods and Services Act, 2017 (hereinafter collectively called the GST Act ), if aggrieved by this ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the GST Act applies to the input tax credit on the inward supply of works contract service for the construction of immovable property other than plant and machinery. However, the input tax credit on the inward supply of works contract service shall be available if the outward supply is also works contract service. 2.3 The applicant argues that the credit of input tax on the inputs, including input services, for the outward supply of works contract is not blocked by the above provisions of section 17(5)(c) of the GST Act. Such outward supply of works contract service to a municipal corporation is neither an exempted supply under Entry No. 3 of Notification No. 12/2017 CT (Rate) dated 28/06/2017 and, therefore, the input tax credit cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he scope of section 17(5) of the GST Act. The applicant submits that the said sub-section prohibits the recipient from claiming input tax credit on the inward supplies of the goods and services listed in the clauses that follow. The concerned officer from the revenue argues that it prohibits the recipient from claiming input tax credit if his supplies of the goods and services satisfy the conditions mentioned in any of the clauses thereunder. 4.2 For a better understanding of the dispute, excerpts from the provisions under section 17(5) of the GST Act are reproduced below: Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... des both inward and outward supplies. If a person makes a supply, it refers to an outward supply. If the taxable person claims or is prohibited from claiming the input tax credit in respect of a supply, it refers to an inward supply. Each of the clauses of section 17(5) of the GST Act describes the supply of a class of goods or services. The input tax credit shall not be available in respect of any of the supplies listed under the clauses (a) to (i). In other words, a taxable person cannot claim the input tax credit in respect of these supplies. A taxable person can claim the input tax credit in respect of a supply only if he is a recipient of the said supply. The clauses (a) to (i) of section 17(5) of the GST Act, therefore, in the con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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