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TMI Blog2024 (8) TMI 378X X X X Extracts X X X X X X X X Extracts X X X X ..... oods and Services Tax (GST), whether the applicant can claim and utilise the CGST and SGST paid at the instance of procurement of the solar power plant as input tax credit for payment of the GST liability as per Sr. No. a) and b) above? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression GST Act' would mean CGST Act and MGST Act. 1) FACTS AND CONTENTION-Submitted by Applicant. 11. The applicant is a company registered under the Companies Act, 2013. 1.2 Applicant is engaged in production of Electrical Energy through its solar power plant located at Village Nagansur, Taluka Akkalkot, District Solapur, Maharashtra. 1.3 During the period August 2022 till 27 March 2023 the company has incurred an expenditure of Rs. 17,60,43,174/-(including SGST Rs. 1,04,30,132/-and CGST Rs. 1,04,30,132/-). 1.4 (i) The applicant has ente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y LLP which is connected to the MSEDCL grid IV MSEDCL delivers the electrical energy to the ultimate consumer viz. Kores India Limited, Chakan, Pune through its own transmission and distribution infrastructure V The electrical energy is sold by the applicant to M/s. Phillip Commodities Private Limited which in turn is sold by Phillip Commodities Private Limited to M/s. Kores India Limited through the Grid Connectivity of MSEDCL. As explained above M/s. Phillip Commodities Private Limited is an authorised trading partner as registered with the Central Electricity Regulatory Commission of India. c) Business structure On a careful analysis of the notification as above and the agreement entered with the customer, it can be concluded that the applicant is involved in two different business as follows: Sr. No. Description Taxability under GST HSN /SAC Code 1 Production of electrical energy Exempt 271600 Electrical Energy 2 Transmission and distribution of electricity Taxable 996911-Electricity Transmission Services 996912 Electricity Distribution Services 2) STATEMENT CONTAINING APPLICANT'S INTERPRETATION OF LAW 2.1) Exemption notification Supply of Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rate supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rate supplies. " (3) Rules 42 & 43 of CGST rules 2017-provide that the Applicant is not entitled to Input Tax credit as its all out put supplies are Exempted from tax. (4) There is no proceedings pending or decided against the applicant under any provisions of The GST Act 2017 as on date. 4. HEARING Preliminary hearing in the matter was held on 09.05.2024. Mr. Narendra K. Patil, C.A. Appeared, and requested for admission of the application Jurisdictional Officer Mr. A.S. Jagdale, STO PUN-VAT-C-819 also appeared. The application was admitted and called for final hearing on 03.07.2024 Mr. Narendra K. Patil, C.A. authorized Representative, appeared made oral and written submissions. Jurisdictional Officer Mr. A.S. Jagdale, STO, PUN-VAT-C-819 appeared. We heard both the sides. 5. Findi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Green Energy LLP which is connected to the MSEDCL grid. 5.1.4) Billing of exported units is be done on main meter (22004263) installed at 33/11kv Nagansur Sub-station on percentage basis & Auxiliary supply will be billed on consumer end metering: 23001435, as actual at park end.7) MSEDCL does not charge "Transmission and distribution charge" to the Applicant. 5.1.5) The electrical energy is sold by the applicant to M/s. Phillip Commodities Private Limited which in turn is sold through power purchase agreement executed on 09.02.2023 between Phillip Commodities Private Limited to M/s. Kores India Limited (hereinafter referred as "End Consumer"), Itd situated at (G.N.149, Chakan, Talegaon road, Tal. Khed, Dist. Pune-410501.), through the Grid Connectivity of MSEDCL. 5.1.6) MSEDCL delivers the electrical energy to the ultimate consumer viz. Kores India Limited, Chakan, Pune (End Consumer) through its own transmission and distribution infrastructure. MSEDCL charges the "Transmission and distribution charge" from the End Consumer which ultimately consumes the Electricity. 5.1.7) Invoice is raised by MSEDCL on the ultimate consumer which includes only the transmission, distribution a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sumer Number 176099030420 Address Plot No. J2 S-Block, Pimpri, 411026 Bill for MSEDCL Consumption Rate Amount Rs. Demand Charges 499.00 23,71,747.00 Energy Charges KVAH Units: 677001 8.12 54,97,248,.00 FAC Charges @ 0.35 51,223.90 ......................... Bill for Open Access Rate Amount Rs. Electricity Duty 0.1800 1,21,142.34 Wheeling Charges ([email protected]) 11,31,759.00 Transmission Charges 18,86,265.00 Operating Charges 60,730.00 5.2 Based on this fact the applicant has raised following questions as under: 1) Whether on the basis of the facts the applicant is liable to pay Goods and Services Tax (GST) on intra state delivery of electrical energy on the basis of the above agreement? 2) Whether on the basis of the facts the applicant is liable to pay Goods and Services Tax (GST) on interstate delivery of electrical energy on the basis of the above agreement? 3) In case the applicant is liable to pay Goods and Services Tax (GST), whether the applicant can claim and utilise the CGST and SGST paid at the instance of procurement of the solar power plant as input tax cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding zero rated supplies and partly for effecting exempt supplies, shall be attributed to the purposes of business or for effecting taxable supplies in the following manner, namely:- ......." 5) Rule 43- "43.Manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases.-(1) Subject to the provisions of sub-section (3) of section 16, the input tax credit in respect of capital goods, which attract the provisions of sub-sections (1) and (2) of section 17, being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies, shall be attributed to the purposes of business or for effecting taxable supplies in the following manner, namely,-. ..............................." 6. In view of the extensive deliberations as held hereinabove, we pass an order as follows: ORDER (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) For reasons as discussed in the body of the order, the questions are answered thus - 1. Whether on the basis of the facts t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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