The issue of eligibility of Transitional Credit is not under the purview of the Advance Ruling.
Sec 142 of the CGST Act,2017- Transitional credit— In the instant case, on the applicability of GST on the ‘Mobilization Advance’ which is transitioned to GST, the lower authority has ruled that ‘the transition provision applicable to the case at hand is as per Section 142(11)(b) of the act and Mobilisation advance to the extent received prior to the implementation of GST towards supply of Works Contract Service is not to be subjected to GST as per the provisions of Section 142(11)(b) of the GST Act 2017’.
The issue to be decided is whether GST is payable on that portion of Mobilization advance transitioned into GST and on which no tax has been paid in the Pre-GST regime
The next issue raised by the appellant is on their eligibility to credit based on the transitional provisions which has not been answered by the Lower Authority as not falling under the purview of this authority.
Held that— We hold that
1. With regard to the Mobilization Advance transitioned into GST on which no Service Tax is paid as per Chapter V of Finance Act 1994, the issue is not answered and is deemed to be that no ruling is issued under Section 101(3) of the CGST/TNGST Act 2017 because of the divergence of opinion between both the Members.
2. On the issue of eligibility of Transitional Credit, we hold that the same is not under the purview of the Advance Ruling.