Maintainability of application— In the instant case, applicant had received a work order during 2014. As on the date of implementation of the Goods and Services Tax, almost 70% of the work was over and a large quantity of mechanical, electrical raw materials and other parts of the project was lying at the worksite.
The majority of the items were supplied by vendors who were in the exempted sectors and there was no cenvatable excise invoices.
Since the invoices were beyond the time limit of one year as on 01.07.2017, no ITC could be claimed. Only very few items were obtained within one year supported by excise invoices. Hence, the claim of ITC on inputs lying in stock as on 01.07.2017 was not made. The work order was issued in 2014 when cenvat credit was not admissible and hence the cost of the inputs were reckoned without taking into account the ITC benefit on the materials / inputs.
Hence the applicant requested advance ruling on the following;
i. In as much as no credit on the inputs lying in stock as on 01.07.2017 having been availed, there is no amount of ITC benefit to be passed on to the clients.
ii. The commensurate credit passed on to clients for the ITC availed on inputs received after 01.07.2017 will be in full compliance of the provisions of GST law on the issue.
Held that— The issues raised in the instant application is regarding the requirement of the passing over of the benefit of ITC on goods lying in stock as on the appointed date i.e: 01.07.2017 and in respect of the goods procured after the appointed date, which is outside the purview of the matters listed in sub-section (2) of Section 97 of the CGST/SGST Act, 2017. Hence, no advance ruling can be issued by this authority in respect of the questions raised in this application.—Shriram Epc Limited, In Re…  24 TAXLOK.COM 073 (AAR-Kerala)