Case Law Details
In re Yougesh Charan (GST AAR Rajasthan)
Introduction: The article delves into the case of M/s Yougesh Charan, an unregistered individual seeking clarification on the availability of input tax credit for biofuel, fuel oil, or blended biofuel used in providing transportation services. The applicant intended to start a business of supplying transportation services and sought an advance ruling under Section 97(2)(a) of the CGST Act.
Detailed Analysis: The applicant, Yougesh Charan, aimed to register under the CGST Act and RGST Act, with applicable service tax of 12% under the forward charge mechanism. They planned to use “Blended Biofuel/Fuel Oil/Bio Fuel” in vehicles for transporting goods. The vendor charged tax at 18% under HSN 2710. The applicant sought clarity on whether input tax credit for the tax charged on these goods would be available for providing transportation services taxed at 12%.
The application raised questions on the interpretation of the law, specifically concerning the availability of input tax credit on inputs, input services, or capital goods used for supplying transportation services. The applicant preferred an application for advance ruling, seeking clarity on the tax credit for “Blended Bio Fuel/Fuel Oil/Bio Fuel.”
However, the applicant later decided to withdraw the Advance Ruling Application, as per their letter dated 02/08/2023, stating they were no longer pursuing the business for which they sought clarification.
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