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TMI Blog2020 (12) TMI 1298X X X X Extracts X X X X X X X X Extracts X X X X ..... just the same, the applicant may approach to appropriate forum which is GST Policy Wing. How can builder get GST Credit adjustment if builder does not have future GST liability in this project? - HELD THAT:- The question is out of purview of advance ruling authority. As such, the question raised by the applicant is not answered. Will builder be entitled to GST refund if amount is not adjustable from future liability of GST under the project? - HELD THAT:- The question is out of purview of advance ruling authority. However, whether the applicant is entitled for refund or not under Section 54 of Central Goods Services Tax Act, 2017 read with Rule 89 of Central Goods Services Tax Rules, 2017 would be decided by the jurisdictional authority subject to fulfillment of necessary conditions of refund. The questions raised by the applicant are in nature of procedural clarification which is to avail benefit of reduced rate of GST under CLSS scheme as explained in clarification issued by the Tax Research Unit, Ministry of Finance, Govt. of India. As due to time limit to issue credit note and also applicant's inability to adjust excess tax paid due to reduced tax liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is neither pending nor decided in any proceedings under any of the provisions of the Act, against the applicant. 5. The applicant has submitted that- (i) they built a residential complex which got completion from competent authorities on 30th Sept 2019. Maximum numbers of residential flats were sold before completion of the project. Some Flat buyers who were otherwise qualified to get lower rate of GST (8% instead of 12%) as per Clarification issued by the Department of Revenue on 07th May 2018 under the CLSS Scheme and will get subvention certificate and/or interest subsidy in his/her Bank Account either after lapse of six months from end of financial year during which demand was raised and GST was charged or after Completion Date i.e. 30th Sept 2019 in this case but as per the clarification issued by the department of revenue, It is said that CLSS benefit will be available only if MHUA will prescribe a certificate by PLIs, and on the basis of which the builder may charge reduced rate of GST on houses constructed/acquired under CLSS but format of this certificate is not available to PLIs and no such certificate is issued in this regard. (ii) they do not have sufficie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certificate late or Subsidy in his bank account after expiry of period under which builder can adjust credit note/s. So Builder is finding it difficult to adjust GST liability if subsidy received after the six month from the end of the FY. There is no clarity in the law about all these situations. (vii) As per their view point, keeping in view broad objective of implementation of GST as indirect tax reform, credit adjustment after expiry of six months from close of financial year should be allowed in such cases. In case of no future tax liability or less future tax liability refund of tax should be allowed as Refund of excess payment of Tax as GST was paid in excess of what it was supposed to be paid as per Government clarification at the point of time of supply. 6. The application for advance ruling was forwarded to the Jurisdictional GST Officer to offer their comments/views/verification report on the matter. The Assistant Commissioner, CGST Central Excise Division I, GB Nagar vide his letter C.No. V(30)Tech/Misc. Report/D-I/GBN/18/2018/1050 dated 27.11.2020 informed that no such case noticed under the jurisdiction of the concerned Range. The Additional Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of- (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both,. (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered,. (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. 10. We find that the applicant in his application for advance ruling (Form GST ARA-01) has ticked clause (b) i.e. applicability of a notification issued under the provisions of this Act and (d) i.e. admissibility of input tax credit of tax paid or deemed to have been paid. We find that the questions are not related to clause (d) of Section 97(2) of the CGAT Act, 2017 as there is no issue of admissibility of input tax credit. However, question no. 1 raised by the applicant is squarely covered in clause (b) as the question is related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of credit notes as per Section 34(2) of the CGST Act, 2017 and there are cases where buyer becomes eligible for CLSS after due time limit for issuance of credit notes. Moreover, due to obtaining completion certificate for certain towers, the output GST liability is reduced and is not sufficient enough to adjust this reduced tax liability through such credit notes. 15. As per sub-section (1) of section 34 of Central Goods Services Tax Act, 2017, the registered person, who has supplied such services, may issue to the recipient credit notes for supplies made in a financial year. 16. As per sub-section (2) of section 34 of Central Goods Services Tax Act, 2017, any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed provided that no reduction in output tax liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plier on advances received for an event which got cancelled subsequently and for which no invoice has been issued in terms of section 31 (2) of the CGST Act, he is required to issue a refund voucher in terms of section 31 (3) (e) of the CGST Act read with rule 51 of the CGST Rules. The taxpayer can apply for refund of GST paid on such advances by filing FORM GST RFD-01 under the category Refund of excess payment of tax . Having gone through the circular, it is ample clear that in exceptional circumstances refund cases may be filed subject to satisfaction of above mentioned criteria. 18. However, the questions raised by the applicant are in nature of procedural clarification which is to avail benefit of reduced rate of GST under CLSS scheme as explained in above mentioned clarification issued by the Tax Research Unit, Ministry of Finance, Govt. of India. As due to time limit to issue credit note and also applicant's inability to adjust excess tax paid due to reduced tax liability, the applicant is not getting benefit of reduced tax liability under CLSS. It creates a very peculiar condition but the authority of advance ruling is not an appropriat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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