9911796707
TMI Blog2022 (11) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... read with Rule 104 of 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 registered under the provisions of Central goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively). The applicant is engaged in the business of sale of used gold Jewellery (second-hand goods). 3. The applicant has sought advance ruling in respect of the following questions:- i. Whether Applicant who is under Marginal Scheme can claim Input Tax Credit on the expenses like Rent, Advertisement expenses, commission, Professional expenses and other like expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods, having once borne the incidence of tax, re-enter the economic supply chain. (Rule 32(5) of the CGST Act 2017 read with Notification No. 10/2017-Central Tax (Rate), New Delhi, dated 28th June, 2017). 5.3 The applicant states that input tax on various expenses like advertisement, rent, professional charges, and other expenses are claimable as per Section 16 of the GST Act where all the conditions are satisfied without which business cannot be run. 6. Applicant's Interpretation of Law: 6.1 The applicant submits that as a registered dealer they satisfy the conditions laid down u/s.16 of the GST Act in order to claim the input tax charged on any supply of goods or services or both to him which are used or intended to be used i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; (ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person; (c) subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input tax credit admissible in respect of the said supply; and (d) he has furnished the return under section 39: 6.2 Further, the applicant states that they have single vertical business and incurs expenses like rent, advertisement, professional expenses, logistic expense ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenses like Rent, Advertisement expenses, commission, Professional expenses and other like expenses while being under Marginal Scheme. 11. Now we invite reference of Rule 32(5) of the CGST Rules 2017. The same is reproduced below:- Rule 32. Determination of value in respect of certain supplies.- 1).......... 2).......... 3).......... 4).......... 5) Where a taxable supply is provided by a person dealing in buying and selling of second hand goods i.e., used goods as such or after such minor processing which does not change the nature of the goods and where no input tax credit has been availed on the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit of input tax charged on any 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 and the said amount shall be credited to the electronic credit ledger of such person. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; l[(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed: Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon. (3) Where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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