9911796707
TMI Blog2023 (6) TMI 1184X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication 16/17.1.2023 from M/s SBT Textiles Private Limited, Plot no. 619 and 612 B, Near Narayani Rail, Industrial Area, Urla, Raipur, Chhattisgarh, 492001, having GSTIN 22AAICS9568G3ZX. PROCEEDINGS [U/s 98 of the Chhattisgarh Goods & Services Tax Act, 2017 (herein- after referred to as CGGST Act, 2017)] F.No. SGST/AAR/01/2023 Raipur Dated 13-04-2023 M/s SBT Textiles Private Limited. Plot no. 619 and 612 13, Near Narayani Rail, Industrial Area, Urla, Raipur, Chhattisgarh, 492001, holding GSTIN 22AAICS9568G3ZX has furnished an application in form ARA-01 dated 16/17.1.2023, duly filled application with all documents received on 7.2.2023 under section 97 of the Chhattisgarh Goods & Services Tax Act, 2017 seeking advance ruling regarding transfer of unutilized balance in E-credit ledger on merger of distinct persons as specified in Section 25(4) i.e. on merger of two distinct persons within same State having same PAN in terms of Section 18(3) of CGST Act, 2017 and further regarding transfer of unutilized balance in E-credit ledger between distinct persons as specified in Section 25(4) of CGST Act, 2017 i.e., from one GSTIN to another GSTIN in some State with same PAN, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f a registered persons on account of sale, merger, demerger, amalgamation lease or transfer of the business with the specific provisions for transfer of liabilities, the said registered person shall be allowed to transfer the ITC which remains unutilized in his electronic ledger to such sold, merged, demerged, amalgamated, leased or transferred business in such manner as may be prescribed. ii. That, Rule 41 of CGST Rules, 2017 prescribes the manner of transfer of credit on sale, merger, amalgamation, lease or transfer of a business. iii. That, as per section 2 (94) of CGST Act, 2017 registered person means a person who is registered under section 25 but does not include a person having a Unique Identity number. iv. That, as per section 25 (4) of CGST Act, 2017 a person who has obtained registration whether in one State or more than one State shall in respect of such registration be treated as distinct persons for the purpose of this Act. v. That, from the concurrent reading of above provisions it can be concluded that where a company has obtained more than one registration in a State for its different businesses under the same PAN, then all such registration will be treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4) i.e., on merger of two distinct GSTINs of same PAN within State in terms of section 18 (3) of CGST Act, 2017? (ii) Whether unutilized balance of E-credit ledger can be transferred between distinct persons as specified in section 25(4) i.e., from one GSTIN to another GSTIN in same State within same PAN without following the process of merger? They reiterated their point of view in the matter as made in their ARAD] and thus requested for a ruling in the matter. 4.1 The jurisdictional Deputy Commissioner, Division-I, CGST Raipur under his letter CGST/AAR/D-l/RPR/2022-23 /1200 dated 21.3.2023 opined that the issue of transfer of un-utilized balance of E-credit ledger on merger to two distinct units stands clarified vide CGST circular no. 133/2020 dated 23.3.2020 and further that there is no procedure defined for transfer of unutilized balance of E-credit ledger between distinct persons and hence not eligible for transfer. The legal position, analysis and discussion: - 5, At the very outset, we would like to make it clear that the provisions for implementing the CGST Act and the Chhattisgarh GST Act, 2017 [hereinafter referred to as "the CGST Act and the CGGST Act"] are similar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as sought ruling as to whether unutilized balance of E-credit ledger can be transferred on merger of two distinct GSTINs of same PAN within State in terms of section 18 (3) of CGST Act, 2017 and secondly whether unutilized balance of E-credit ledger can be transferred between distinct persons as specified in section 25 (4) i.e., from one GSTIN to another GSTIN in same State within some PAN without following the process of merger. 8. We find that the points raised by the applicant in the instant issue in hand is beyond the scope of the advance ruling mechanism in as much as Section 97(2) of CGST Act, 2017 spells out the issues on which advance rulings can be sought, as under: - The question, on which the advance ruling is sought under this Act, shall be in respect of- (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goads or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be reg ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
