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TMI BlogClarification on various issues pertaining to GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... etation of section 17(5) of the Delhi Goods & Services Tax Act; iii. Perquisites provided by employer to the employees as per contractual agreement; and iv. Utilisation of the amounts available in the electronic credit ledger and the electronic cash ledger for payment of tax and other liabilities. 2. In order to clarify the issue and to ensure uniformity in the implementation of the provisions of law across the field formations, the Commissioner, State Tax, Delhi in exercise of its powers conferred by section 168 of the Delhi Goods and Services Tax Act, 2017 (hereinafter referred to as "DGST Act"), hereby clarify the issues as under: S. No. Issue Clarification Refund claimed by the recipients of supplies regarded as deem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not ITC in terms of the provisions of Chapter V of the DGST Act, 2017. Therefore, such ITC availed by the recipient of deemed export supply for claiming refund of tax paid on supplies regarded as deemed exports is not to be included in the "Net ITC" for computation of refund of unutilised ITC on account of zero-rated supplies under rule 89(4) or on account of inverted rated structure under rule 89(5) of the DGST Rules, 2017. Clarification on various issues of section 17(5) of the DGST Act 3. Whether the proviso at the end of clause (b) of sub-section (5) of section 17 of the DGST 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 Delhi Goods and Service Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST Act bar availment of ITC on input services by way of "leasing of motor vehicles, vessels or aircraft" or ITC on input services by way of any type of leasing is barred under the said provisions? 1. Sub-clause (i) of clause (b) of sub- section (5) of section 17 of the DGST Act provides that ITC shall not be available in respect of following supply of goods or services or both- "(i) food and 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 goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yer in relation to his employment. It follows therefrom that perquisites provided by the employer to the employee in terms of contractual agreement entered into between the employer and the employee, will not be subjected to GST when the same are provided in terms of the 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 DGST Act, the amount available in the electronic credit ledger may be used for making any payment towards outp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used for making payment of any liability 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 DGST 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 DGST Act, the amount available in the electronic cash ledger may b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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