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TMI BlogClarification on various issue pertaining to GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... t has been decided that the said circular issued by the CBIC is being made applicable, mutatis mutandis , in implementation of the MGST Act, 2017. Copy of the referred CBIC circular is attached herewith. This Trade Circular is clarificatory in nature. Difficulty if any, in the implementation of this Circular may be brought to the notice of the office of the Commissioner of State Tax, Maharashtra. Yours faithfully, (RAJEEV KUMAR MITAL) Commissioner of State Tax, Maharashtra State, Mumbai Circular No. 172/04/2022-GST F. No. CBIC-20001/2/2022-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut Tax Credit (ITC) availed by the recipient of deemed export supply for claiming refund of tax paid on supplies regarded as deemed exports would be subjected to provisions of Section 17 of the CGST Act, 2017. The refund in respect of deemed export supplies is the refund of tax paid on such supplies. However, the recipients of deemed export supplies were facing difficulties on the portal to claim refund of tax paid due to requirement of the portal to debit the amount so claimed from their electronic credit ledger. Considering this difficulty, the tax paid on such supplies, has been made available as ITC to the recipients vide Circular No. 147/03/2021-GST dated 12.03.2021 only for enabling them to claim such refu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 of the CGST Act is applicable to the entire clause (b) or the said proviso is applicable only to sub-clause (iii) of clause (b)? 1. Vide the Central Goods and Service Tax (Amendment Act) 2018 , clause (b) of sub-section (5) of section 17 of the CGST Act was substituted with effect from 01.02.2019. After the said substitution, the proviso after sub- clause (iii) of clause (b) of sub-section (5) of section 17 of the CGST Act provides as under: Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force . 2. The said amendme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply 2. It is clarified that leasing referred in sub-clause (i) of clause (b) of sub-section (5) of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he contract between the employer and employee. Utilisation of the amounts available in the electronic credit ledger and the electronic cash ledger for payment of tax and other liabilities 6. Whether the amount available in the electronic credit ledger can be used for making payment of any tax under the GST Laws? 1. In terms of sub section (4) of section 49 of CGST Act , the amount available in the electronic credit ledger may be used for making any payment towards output tax under the CGST Act or the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as IGST Act ), subject to the provisions relating to the order of utili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y other than tax under the GST Laws? As per sub-section (4) of section 49 , the electronic credit ledger can be used for making payment of output tax only under the CGST Act or the IGST Act . It cannot be used for making payment of any interest, penalty, fees or any other amount payable under the said acts. Similarly, electronic credit ledger cannot be used for payment of erroneous refund sanctioned to the taxpayer, where such refund was sanctioned in cash. 8. Whether the amount available in the electronic cash ledger can be used for making payment of any liability under the GST Laws? As per sub section (3) of section 49 of the CGST Act , the amou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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