Accordingly, Section 97(2) (d) shall refer to admissibility of input tax credit under GST Acts. However, we find that the input Tax credit referred by the applicant relates to the transitional relief, which is paid under the Act other than the Acts referred in the definition of input tax under CGST. Hence, the question sought do not fall under the ambit of Section 97(2) (d) of the CGST Act’ 2017.
AUTHORITY FOR ADVANCE RULINGS, ANDHRA PRADESH
Sino Resources., In re
ORDER NO. AAR/AP/01/GST/2018
MARCH 28, 2018
P. Srinatha, Adv. for the Applicant.
RULING
1. M/s SINO RESOURCES, Door No. 10-1-47, 4D, 4th Floor, Dutt Island Building, Sripuram, Vishakhapatnam (hereinafter also referred as an applicant), having GSTIN 37CUFS4359L1Z4 is an importer of coal and also deals in trading of coal. The applicant has fifed an application seeking advance ruling on a specific question.
2. The applicant has sought advance ruling on following issue:
“Whether Input Tax Credit (ITCj is available on Clean Environment (Energy) Cess paid at the time of import of Coal?”
The applicant submitted relevant supporting documents which suggested that they had a stock of 13,000 Metric Tons of Coal as on 30th June 2017, of which 4000 Metric Tons consisted of imported coal. On the imnorted coal the applicant had paid Rs. 16,00,000/- ( Rupees Sixteen Lakhs) as clean energy Cess, which the applicant has taken credit as Transitional Credit in 1RANS-1. The advance Ruling is basically sought on above issue whether the said Transitional Credit is permissible or not.
3. In terms of Section 98 of CGST Act’ 2017, the application was forwarded to the jurisdictional officer i.e Assistant Commissioner, China Waltair Circle, Visakhapatnam Division. The jurisdictional officer in his remarks submitted that,
“Clean Energy Cess payable on Coal is not menlioned as eligible for taking credit under the credit rules. Hence, the Company is not eligible to take credit on clean energy Cess paid by the dealer under the said rules. Moreover clean energy Cess cannot be paid by utilizing the credit available in the credit account It is to be paid be cash as specified in the proviso 7 of Rule 3(4) of credit rules. Provided also that the CENVAT credit of any duty specified in sub-rule (1) shall not be utilized for payment of the clean energy Cess leviable under section 83 of the Finance Act “2010” and also submitted that “as the clean energy Cess payable is not eligible for giving credit under the existing taws prior to the introduction of APGST Act’2017 the transitional credit on clean energy Cess payable under the APGST Act, 2017 does not arise”.
3.1 A Personal Hearing was given to the applicant/jurisdictional officer on 19.02.2018, for the purpose of admission of the application so filed before the authority. The same was attended by Authored representative Shri. P.Srinatha (Advocate). During the course of P.H., the authorized representative submitted that the issue for which they have sought advance ruling fails under Section 97 (2)(d) of CGST Act’2017. The applicant has filed his written submissions through e-Mail on 19th February 2018.
4. We have gone through the application filed by the applicant and the comments of jurisdictional tax officer. At this stage, our discussion and findings is for admittance or otherwise of the application under Section 98 (2) of the CGST Act’ 2017. The application for advance ruling can be filed for any of the question falling under Section 97(2). For the sake of clarity, the relevant extract of the CGST Act’ 2017 is reproduced hereunder:
Section 97(2): 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 provisions of the GSTAct(s); | |
| (c) | determination of time and value of supply of goods 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 under the Act; | |
| (f) | whether applicant is required to be registered under the Act; | |
| (g) | whether any particular thing done by the applicant with respect to any goods or services amounts to or results in a supply of goods or services, within the meaning of that term. |
Section 2 (62) : “input tax” in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes—
| (a) | the integrated goods and services tax charged on import of goods; | |
| (b) | the tax payable under the provisions of sub-sections (3) and (4) of section 9; | |
| (c) | the tax payable under the provisions of sub-sections (3) and (4) of section 5 of the Integrated Goods and Services Tax Act; | |
| (d) | the tax payable under the provisions of sub-sections (3) and (4) of section 9 of the respective Stale Goods and Services Tax Act; or | |
| (e) | the tax payable under the provisions of sub-sections (3) and (4) of section 7 of the Union Territory Goods and Services Tax Act, but does not include the tax paid under the composition levy; |
5. As seen from the definitions referred for input tax’ under CGST Act’2017, it is very clear that the input tax refers to taxes chargeable under SGST, CGST & IGST Acts only. Accordingly, Section 97(2) (d) shall refer to admissibility of input tax credit under GST Acts. However, we find that the input Tax credit referred by the applicant relates to the transitional relief, which is paid under the Act other than the Acts referred in the definition of input tax under CGST. Hence, the question sought do not fall under the ambit of Section 97(2) (d) of the CGST Act’ 2017. Accordingly, we pass the following order:
ORDER
6. The subject application filed by the applicant is beyond the jurisdiction of this authority, as it is beyond the domain of Section 97(2) of the CGST Act’ 2017. Therefore, the application is not admitted under Section 98(2) of the CGST Act’ 2017.
Other GST Judgments
Related Post on clean energy cess
HC allowed Credit of clean energy cess paid on coal for payment of GST compensation cess
Credit of Clean Energy Cess allowed for GST Compensation Cess Payment : HC
GST credit for clean energy cess cannot be taken
GST compensation cess on stock of Minining Companies if Clean Energy Cess paid
Credit of Clean Energy Cess cannot be carried forward on transition under GST
Clean Energy Cess will not continue in GST
Related Post on Input Tax Credit
- Input tax Credit on capital goods purchased before GST Registration
- Input Tax Credit in GST ( India )
- When you Can not Claim ITC under GST
- Last date to claim Input Tax Credit for FY 2017-18 under GST
- Example on Rule 5 of GST Input Tax Credit Rule – ITC on Capital Goods
- Example on Rule 7 of GST Input Tax Credit Rule – Inputs Partly used for business and partly for other purposes
- Example Rule 8 of GST Input Tax Credit Rule – Capital Goods Partly used for Business and partly for other purposes
- Example Rule 9 GST Input Tax Credit Rules – Reversal of ITC on Inputs & Capital Goods
- Video : GST Input Tax Credit wrongly availed : GST News [Part 228]
- Video : GST ITC 4 : Goods to Job Worker :GST News [ Part 166 ]