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TMI Blog2023 (5) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... ansfer, barter, exchange, renting, disposal or leasing of such vehicles. The transaction of supply of ambulances to government of Tripura is an interstate supply which attracts tax under IGST head. The rate of tax applicable to the commodity under HSN 8703 is 28% for all transactions after 30.09.2021. It is very clear that this transaction does not fit to the description of vehicle under the tariff heading 8702 as the vehicle, supplied by applicant to government of Tripura, is a seven seater and is meant to transport less than ten or more persons, including the driver, as stated by the applicant. Further they are eligible for taking input tax credit on the tax charged on any supply of goods or services which are used or intended to be used in the course of furtherance of this business provided the applicant fulfils the conditions for availment of ITC as detailed in provisions of Section 16 of CGST/TGST Act 2017 - The applicant shall utilize the input tax credit in the electronic credit ledger as prescribed under Section 49 of the CGST Act, 2017 read with Rule 88A of the CGST Rules pertaining to order of utilization of input tax credit. - SRI S.V. KASI VISWESWARA RAO, AND ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tters for their understanding and to run the business in smooth manner. a) Classification of goods or services or both; b) Rate of GST for the supply of goods or services or both; c) Applicability of a notification issued under the provisions of this Act; d) Determination of the liability to pay tax on any goods or services or both; e) Admissibility of Input Tax Credit on purchase of vehicles. 5. QUESTIONS RAISED: 1. What is the rate of GST for supply of goods or services or both? 2. How to determine the liability to pay tax on goods or services or both? 3. Whether the input tax credit on purchase of vehicles and other components is admissible or not? 6. PERSONAL HEARING: The Authorized representatives of the unit namely Tirupati Reddy, CA and Satya Prakash, CA attended the personal hearing held on 24.01.2023. The authorized representatives reiterated their averments in the application submitted. 1. The Authorised Representative reiterated the contentions already submitted along with the application. 2. Further, the Authorised Representative/Applicant M/s. Raminfo Limited, Hyderabad, reiterated that their case /Similar Case i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ange, renting, disposal or leasing of such vehicles. The applicant is involved in supply of Motor vehicles in the form of Ambulances (Mobile Common Service Centers) to Government of Tripura. Therefore the applicant is in the business of further supply of Motor vehicles which he purchases. 7.5 As per Section 17(5)(a) of CGST/TGST Act 2017 the ITC on purchase of such vehicles which are meant for further supply of such motor vehicles is not a blocked credit as the definition of supply includes sale, transfer, barter, exchange, renting, disposal or leasing of such vehicles. 7.7 Below is the list of HSN codes pertaining to Motor vehicles under Schedule-4 and GST rates for sale of such Goods as on date: HSN code Description Rate of GST applicable 8702 Motor vehicles for the transport of ten or more persons, including the driver [other than buses for use in public transport, which exclusively run on Bio-fuels] 28% 8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 870 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y tax and the amount remaining, if any, may be utilised towards payment of integrated tax: [Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;] (e) the central tax shall not be utilised towards payment of State tax or Union territory tax; and (f) the State tax or Union territory tax shall not be utilised towards payment of central tax. 7.12 Relevant extract of Rule 88A of the CGST Rules, 2017 is produced below: 88A. Order of utilization of input tax credit.- Input tax credit on account of integrated tax shall first be utilised towards payment of integrated tax, and the amount remaining, if any, may be utilised towards the payment of central tax and State tax or Union territory tax, as the case may be, in any order: Provided that the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit ava ..... X X X X Extracts X X X X X X X X Extracts X X X X
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