Since the applicant has been availing the benefit of paying GST at a concessional rate on supply of second hand vehicle, they shall not avail Input Tax Credit.
Input tax credit- section 17 of CGST Act- In the instant case, the applicant, seeking an advance ruling in respect of the following questions.
1. How to calculate margin on sale of second hand goods? Whether
A) Margin = Sales price - Purchase price OR
B) Margin = Sales price - (Purchase price + Processing cost)
2) Whether tax is to be calculated on margin or the margin is inclusive of tax?
3) Can we claim Input Tax Credit on other indirect expenses incurred for the purpose of business such as rent, commission, professional fees, telephone etc.?
4) If in F.Y. 2:019-20 our total margin on sale of second hand goods is below Rs. 1.5 crores and total sale value of second hand goods is above Rs. 1.5 crores can we opt for composition scheme for F.Y. 2020-21 as in F.Y. 2019-20 our total margin will be less than Rs. 1.5 crores.
The applicant, during the course of the final hearing held on 12.10.2021 desired to withdraw Question Nos. 1, 2 and 4 and the same has been accepted
Therefore, the only question before us is whether the applicant can claim Input Tax Credit on other indirect expenses incurred for the purpose of business such as rent, commission, professional fees, telephone etc.
Held that- the concessional rate under the notification 08/ 2018 (ctr) shall not apply, if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods. In other words, since the applicant has been availing the benefit of the said notification and paying GST at a concessional rate, they shall not avail Input Tax Credit, as queried.
Since the applicant has been availing the benefit of paying GST at a concessional rate on supply of second hand vehicle, they shall not avail Input Tax Credit.
Input tax credit- section 17 of CGST Act- In the instant case, the applicant, seeking an advance ruling in respect of the following questions.
1. How to calculate margin on sale of second hand goods? Whether
A) Margin = Sales price - Purchase price OR
B) Margin = Sales price - (Purchase price + Processing cost)
2) Whether tax is to be calculated on margin or the margin is inclusive of tax?
3) Can we claim Input Tax Credit on other indirect expenses incurred for the purpose of business such as rent, commission, professional fees, telephone etc.?
4) If in F.Y. 2:019-20 our total margin on sale of second hand goods is below Rs. 1.5 crores and total sale value of second hand goods is above Rs. 1.5 crores can we opt for composition scheme for F.Y. 2020-21 as in F.Y. 2019-20 our total margin will be less than Rs. 1.5 crores.
The applicant, during the course of the final hearing held on 12.10.2021 desired to withdraw Question Nos. 1, 2 and 4 and the same has been accepted
Therefore, the only question before us is whether the applicant can claim Input Tax Credit on other indirect expenses incurred for the purpose of business such as rent, commission, professional fees, telephone etc.
Held that- the concessional rate under the notification 08/ 2018 (ctr) shall not apply, if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods. In other words, since the applicant has been availing the benefit of the said notification and paying GST at a concessional rate, they shall not avail Input Tax Credit, as queried.