GST paid on purchase of Gunny bags shall not be claimed an input tax credit as per sub section 2 of section 17 of the CGST Act 2017.
Input tax credit-- In the instant case, the applicant is involved in the supply of the Kharif Arhar (Tur) and Kharif Green Gram to NAFED procured from the farmers for which the applicant receives consideration in the course or furtherance of business. the applicant had sought Advance Ruling on,-
1. Whether the transaction of supplying Kharif Arhar (Tur) Crops and Green Gram crops from farmers to NAFED is a taxable supply? What is the rate of tax to be charged for sale of Agricultural produce to NAFED, if it is to be treated as taxable supply?
2. Whether GST paid on purchase of Gunny bags by KSCMFL eligible to be claimed as Input tax credit?
3. Whether provisions of section 51 and Notification 50/2018 - Central Tax dated 13th September 2018 applicable on KSCMFL i.e. is KSCMFL required to deduct TDS u/s 51 of CGST/KGST Act, 2017 on payments to be made by KSCMFL to NAFED?
Held that-
1. Supply of Kharif Arhar (Tur) and Green Gram to NAFED is an exempted supply as per entry No.45 of the Notification No.2/2017-Central Tax (Rate) dated 28th June, 2017.
2. GST paid on purchase of Gunny bags shall not be claimed an input tax credit as per sub-section 2 of Section 17 of the CGST Act 2017.
3. The provisions of TDS as prescribed under Section 51 of CGST/KGST Act, 2017 does not apply to the applicant.
GST paid on purchase of Gunny bags shall not be claimed an input tax credit as per sub section 2 of section 17 of the CGST Act 2017.
Input tax credit-- In the instant case, the applicant is involved in the supply of the Kharif Arhar (Tur) and Kharif Green Gram to NAFED procured from the farmers for which the applicant receives consideration in the course or furtherance of business. the applicant had sought Advance Ruling on,-
1. Whether the transaction of supplying Kharif Arhar (Tur) Crops and Green Gram crops from farmers to NAFED is a taxable supply? What is the rate of tax to be charged for sale of Agricultural produce to NAFED, if it is to be treated as taxable supply?
2. Whether GST paid on purchase of Gunny bags by KSCMFL eligible to be claimed as Input tax credit?
3. Whether provisions of section 51 and Notification 50/2018 - Central Tax dated 13th September 2018 applicable on KSCMFL i.e. is KSCMFL required to deduct TDS u/s 51 of CGST/KGST Act, 2017 on payments to be made by KSCMFL to NAFED?
Held that-
1. Supply of Kharif Arhar (Tur) and Green Gram to NAFED is an exempted supply as per entry No.45 of the Notification No.2/2017-Central Tax (Rate) dated 28th June, 2017.
2. GST paid on purchase of Gunny bags shall not be claimed an input tax credit as per sub-section 2 of Section 17 of the CGST Act 2017.
3. The provisions of TDS as prescribed under Section 51 of CGST/KGST Act, 2017 does not apply to the applicant.