Case Law Details
In re Preethi Granite Exports (GST AAR Karnataka)
The first question is whether the applicant can continue with existing registration for discharge of GST liability and also for filing of returns relating to their new business. In other words, the applicant intends to know whether a separate registration needs to be taken or otherwise for conduct of his new business. It is seen, from the said question, that the applicant does not intend to know whether they are required to be registered or not. The applicant’s only Concern is whether registration can be continued or a fresh registration needs to be taken for their new business, which is not covered under Section 97(2)(f) i.e. whether applicant is required to be registered” and hence the said question cannot be answered.
The second question is about the utilisation of the ITC available in their Electronic Credit Ledger. The applicant claims that the said question is covered under the issue admissibility of input tax credit of tax paid or deemed to have been paid, in terms of Section 97(2)(d) of the CGST Act 2017. In this regard we invite reference to Section 16(1) of the CGST Act 2017, which is as under:
“16. Eligibility and conditions for taking input tax credit.— (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.”
It could be seen from the above that the admissibility or entitlement of credit of tax charged to a registered person, on any supply of goods or services or both, which are used or intended to be used in the course or furtherance of business and the said amount shall be credited to the electronic credit ledger of such registered person, in terms of Section 16 of the CGST Act 2017, subject to the conditions under Section 17(5) of the said Act &, relevant rules. It is pertinent to mention here that the admissibility of the ITC is concerned till the credit of the said amount into the electronic credit ledger. The applicant in the instant question seeks advance ruling on the issue of utilization of ITC available in the Electronic Credit Ledger and thus the question is not covered under the issues specified in Section 97(2) of the CGST Act 2017.
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