ITC benefit passing requirement is outside the purview of AAR

In Re Shriram EPC Limited (GST AAR Kerala)

The issues raised in the instant application is regarding the requirement of the passing over of the benefit of ITC on goods lying in stock as on the appointed date i.e; 01.07.2017 and in respect of the goods procured after the appointed date, which is outside the purview of the matters listed in sub-section (2) of Section 97 of the CGST/SGST Act, 2017. Hence, no advance ruling can be issued by this authority in respect of the questions raised in this application.

FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,KERALA

ADVANCE RULING No. KER/89/2020 Dated 20-05-2020

1. M/s Shriram EPC Ltd (hereinafter referred to as the “applicant”) had received a work order from M/s Kerala Feeds Ltd, Thrissur during 2014, for the work of design and engineering, supply, erection, testing and commissioning of structural, Mechanical, Electrical and Instrumentation equipments /works for the setting up of 500 TTD Cattle Feed Plant project at Thodupuzha. Even though it was single tender, for execution purpose, it has been split up into three orders viz (i) Design and Engineering (ii) Supply of materials under sale in transit and (iii) Erection and installation of goods. As on the date of implementation of the Goods and Services Tax, almost 70% of the work was over and a large quantity of mechanical, electrical raw materials and other parts of the project was lying at the worksite.

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