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TMI Blog2022 (12) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... ountries; they export 90% of the granite slabs and also sell 10% in domestic market; they are running the business for the past 15-20 years; they have decided to close the business as they could not continue the business due to strict competition in the market; there is no stock of raw material, components, consumables, capital goods & machinery at present in the premises and the said premises has been de-bonded; they have small quantity of finished goods, which will be supplied on payment of tax within a short period of time; they have a balance of Rs.37,22,275/- under CGST, Rs.37,22,275/- under KGST; Rs.9,990/- under Cess, in the Electronic Credit Ledger and Rs.37,955/- under CGST & Rs.37,955/- under KGST in the Electronic Cash Ledger. The applicant, in view of the above, intend to give the said premises on Rent/Lease for commercial purpose and the Lessee will do the commercial business in the said premises on obtaining separate GSTIN and following the procedures as per GST Act & Rules. 3. The applicant, in view of the foregoing, sought advance ruling in respect of the following questions. a) Can the Applicant continue with the existing GSTIN 29AAEFP0358E1ZC to discharge the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has an ITC specific to raw materials, consumables, capital goods relating to the manufacture of Granite Slabs and has not ITC in relation to the supply of renting / leasing services. Thus the doctrine of common ITC pool as propounded in the said ruling is not applicable to the present case. 4.4 Further, allowing such credit earned through one business vertical to another may not be correct in general, though not specific to the issue in question, in view of the block credit principle under Section 17(5) of the CGST Act 2017 as in such cases of blocked credit is supply specific i.e. the credit is disallowed in respect of some specific supplies whereas the same is allowed for other supplies. 4.5 Applicant can utilise balance in Cash Ledger as per Section 49 (3) of the CGST Act 2017 to discharge GST liability (output tax) on rent for the premises given for rental/lease basis. PERSONAL HEARING PROCEEDINGS 5. Sri B C Bhat, Advocate & Authorised Representative of the applicant appeared for personal hearing proceedings held on 29.09.2022 and reiterated the facts narrated in their application. However, the applicant also requested for additional hearing, which was granted and the seco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he application is admissible. However, the applicant in the additional submissions stated that the issue of utilisation of Input Tax Credit is covered under Section 97(2)(b) and thus claimed that the instant application is admissible. 10 The first question is whether the applicant can continue with existing registration for discharge of GST liability and also for filing of returns relating to their new business. In other words, the applicant intends to know whether a separate registration needs to be taken or otherwise for conduct of his new business. It is seen, from the said question, that the applicant does not intend to know whether they are required to be registered or not. The applicant's only concern is whether registration can be continued or a fresh registration needs to be taken for their new business, which is not covered under Section 97 (2) (f) i.e. "whether applicant is required to be registered" and hence the said question cannot be answered. 11. Now we proceed to examine whether the 2nd and 3rd questions, raised by the applicant in para 3 supra are covered under Section 97(2) of the Act ibid or not, in respect of which advance ruling can be given or otherwise. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uling on the issue of utilization of ITC available in the Electronic Credit Ledger and thus the question is not covered under the issues specified in Section 97(2) of the CGST Act 2017. 14. The third question is about utilization of amount available in their Electronic Cash Ledger towards discharge of GST liability on rental/lease income, which is not covered under the issues specified in Section 97(2) of the CGST Act 2017. 15. The applicant vide their additional submissions, furnished during the hearing held on 10.11.2022, contended that the issue of utilization of Input Tax Credit available with the applicant is covered under Section 97(2)(b) of the CGST Act as "applicability of a notification issued under the provisions of this Act" and sought for advance ruling on the questions raised. 16. The applicant contended that Section 41(2) and 49(4) of the CGST Act 2017 are relevant to utilization of Input Tax Credit, issued under Notification No.9/2017-Central Tax dated 28.06.2017. We invite reference to the aforesaid sections which are as under: Section 41 (2) : The credit referred to in Section 41 (1) shall be utilized only for payment of self-assessed output tax as per the ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 49 for section 49A or section 49B]181. (3) Where a registered person has claimed refund of any unutilized amount from the electronic credit ledger in accordance with the provisions of section 54, the amount to the extent of the claim shall be debited in the said ledger. (4) If the refund so filed is rejected, either fully or partly, the amount debited under sub-rule (3), to the extent of rejection, shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03. (4A) Where a registered person has claimed refund of any amount paid as tax wrongly paid or paid in excess for which debit has been made from the electronic credit ledger, the said amount, if found admissible, shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03. (5) Save as provided in the provisions of this Chapter, no entry shall be made directly in the electronic credit ledger under any circumstance. (6) A registered person shall, upon noticing any discrepancy in his electronic credit ledger, communicate the same to the officer exercising jurisdiction in the matter, through the common portal in FORM G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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