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If the person is not registered in a particular state, the tax paid on the inward supplies in that state is not ‘input tax’ in relation to the said person.

Shanti Prime Publication Pvt. Ltd.

Input tax credit—Place of supply—In the instant application question before authority is that—

a. Can a person, registered in WB, claim ITC for CGST and SGST of other states,

b. Can he adjust the ITC of one state’s CGST for payment of another state’s CGST,

c. Can he adjust the ITC of Tamil Nadu GST for payment of IGST, whereas he is not registered in Tamil Nadu?

Held that— As input tax and its credit are always linked with whether the person is registered or not, the two components of GST paid on inward intra-state supply in Tamil Nadu could have been taken credit of, if only registration is taken in Tamil Nadu under Section 25(1) of the GST Act and is regarded as “distinct person” within the meaning of Section 25(4) of the GST Act. The architecture of the GST Act is such that even if a person is registered in different states all such registrations will be treated as distinct persons, and input tax in the credit ledger of one such person is not transferable to the credit ledger of another.

Ruling—
The Applicant is not registered under Section 25(1) of the CGST Act in Tamil Nadu. The SGST and CGST paid on intra-state inward supply in Tamil Nadu are not, therefore, ‘input tax’ to the Applicant. The GST Act does not contain any concept of ‘input tax’ in relation to an unregistered person. No credit of it is, therefore, admissible under the GST Act.

So, to answer in the Applicant’s language:

a. A person, registered in WB, cannot claim ITC for CGST & SGST of other states.

b. He cannot adjust the ITC of one state’s CGST for payment of another state’s CGST.

c. He cannot adjust the ITC of Tamil Nadu GST for payment of IGST, whereas he is not registered in Tamil Nadu.[M/S. STORM COMMUNICATIONS PRIVATE LIMITED] [AUTHORITY FOR ADVANCE RULING, WEST BENGAL][2019] 8 TAXLOK.COM 040 (AAR-WB)