Input tax credit— In the instant case, the applicant is engaged in trading in fresh and semi processed meat products like chicken, mutton, fish, pork and all type of packed cold cuts spices and masala powder etc.
The applicant has sought advance ruling in respect of the following questions:-
i. What percentage of GST input tax should be claimed for our nature of business as mentioned above for the following services received from our service providers.-
a) GST paid for our shop on commercial rent to landlord.
b) GST paid on commission to Dunzo and Swiggy for ecommerce online service.
c) GST paid on service charges charged by paytm.
d) GST paid on service charges charged by Banks.
ii. What percentage of GST input tax should be claimed for our nature of business as mentioned above for the following other general goods purchased for carrying on our business.-
a) Packing material
b) Printed material
c) Capital goods like cutting machine, weighing scale, refrigerators, computers and hardware and software goods.
iii. What will be the GST consequences if we purchased goods from unregistered and composition dealers?
The Applicant is into supply of fresh and semi processed meat products like chicken, Mutton, fish, pork and all types of packed cold cut, spices and masala powder. The Applicant is apparently into trading of both taxable and exempted goods.
Since the Applicant is involved in the supply of both taxable and exempted supplies, the Applicant has to avail the input tax credit proportionately in terms of section 16, 17 of CGST Act 2017 read with Rule 42 of CGST Rules 2017; wherein the procedure to be followed is clearly mentioned.
Held that—
i. Input tax credit has to be availed in terms of section 16 and 17 of CGST Act 2017 read with Rule 42 of CGST Rules 2017.
ii. Input tax credit has to be availed in terms of section 16 and 17 of CGST Act 2017 read with Rule 42 of CGST Rules 2017.
iii. This question is not covered under the issues referred to in Section 97(2) of CGST Act 2017, in respect of which an applicant can seek. Advance Ruling and hence this Authority refrains from giving any ruling.