9911796707
TMI Blog2023 (6) TMI 1184X X X X Extracts X X X X X X X X Extracts X X X X ..... redit of tax paid or deemed to have been paid. Here the issue being raised by the applicant is admissibility of transfer of unutilized balance of Input Tax Credit in E-credit ledger and not regarding the admissibility of Input Tax Credit of tax paid - as Section 97 (2) (d) specifies about the admissibility of input tax credit of tax paid and not regarding admissibility of transfer of unutilized balance of Input tax credit lying in E-credit ledger, the issues raised by the applicant in the instant ARA-01 is out of the scope of advance ruling and accordingly their application merits rejection. Application for Advance Ruling on the issue of transfer to unutilized balance of Input tax credit lying in E-credit ledger is not maintainable. - SGST/AAR/01/2023 - - - Dated:- 13-4-2023 - SMT. SONAL K. MISHRA AND SHRI SHRAVAN KUMAR BANSAL, MEMBER Subject :- Chhattisgarh GST Act, 2017 - Advance Ruling U/s 98 Chhattisgarh GST Act, 2017 - Advance Ruling U/s 98 sought vide Application dated 16.1.2023 (received on 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, holding GSTIN 22AAICS9568G3Z ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... virtue of Section 25 (4) of CGST, Act 2017 both the above registration i.e., Unit-I and Unit-II having GSTIN -22AAICS9568G1ZZ and 22AAICS9568G3ZX respectively shall be treated as establishments of distinct persons for the purposes of the CGST Act, 2017 and hence are considered as separate registered person in accordance with Section 2(94) of CGST Act, 2017. Now the company wishes to merge both the above units by transfer all the assets and liabilities of unit-II with unit-I and for this purpose desirous to know whether the unutilized balance of ITC can be transferred from one GSTIN to another, by virtue of section 18 (3) of CGST Act, 2017 read with rule 41 of CGST Rules, 2017 (as inserted by Notification no. 10/2017-CT dated 28.6.2017. Further that the company is desirous to know about whether the unutilized balance of ITC can be transferred from one GSTIN to the other even without following the process of merger. Accordingly, the questions on which ruling has been sought by the applicant is as under: - (i) Whether unutilized balance of E-credit ledger can be transferred on merger of distinct persons as specified in Section 25(4) i.e., on merger of two distinct GSTINs of sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by them at the time of registration by filing form ITC-02A. viii. Further Rule 87 (14) as inserted vide Notification no. 14/2022-CT dated 5.7.2022 allows transfer of unutilized balance in CGST and IGST cash ledger between distinct persons as specified in Section 25 (4)/25(5) of CGST Act, 2017. ix. That, by virtue of Rule 87 (14), the unutilized balance of E-cash ledger are specifically allowed to be transferred between establishment of distinct persons i.e. establishment having different GSTIN within same PAN even without merger of both the GSTINs. x. That, similarly the unutilized balance of E-credit ledger should also be allowed to be transferred between establishment of distinct persons i.e., establishment having different GSTIN within same PAN even without merger of both the GSTINs. 4. Personal Hearing: - Keeping with the established principles of natural justice, personal hearing in the matter was extended to the applicant in person, as requested by them and accordingly, Shri Vikram Jain, Director of the Applicant along with Shri Nitin Goyal, CA and authorized representative of the Applicant, M/s SBT Textiles Pvt. Ltd., Plot no. 619 and 612 Near Naray ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance ruling in respect of that State or Union territory. Section 97(2) of CGST Act, 2017 stipulates that: - 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 goods or services or bath; (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 registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. Further section 103 of CGST Act, 2017 stipulates about the ruling pronounced as under: - The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only - a. On the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issues referred to in Section 97 (2) ibid which are in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. In other words, it is the supplier of goods or services or both who can seek an advance ruling on any of the issues specified in clauses (a) to (g) of Section 97(2) above. 9. We find that the applicant in the instant application in form ARA-01 has mentioned that the issue raised by them fall under applicability of a Notification issued under the provision of this Act and also under admissibility of input tax credit of tax paid or deemed to have been paid. 9.1 On perusal of the issues raised by the applicant we find that in the instant case there is neither any issue involving applicability of a Notification issued under the provision of Act nor this is a case regarding admissibility of input tax credit of tax paid or deemed to have been paid. Here the issue being raised by the applicant is admissibility of transfer of unutilized balance of Input Tax Credit in E-credit ledger and not regarding the admissibility of Input Tax Credit of tax paid. In other words, in the instant case in hand eligibility/ admi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
