“ITC OF CGST PAID IN ANOTHER STATE NOT ADMISSIBLE TO RAJASTHAN-REGISTERED TAXPAYER-AAAR RAJASTHAN”

“ITC OF CGST PAID IN ANOTHER STATE NOT ADMISSIBLE TO RAJASTHAN-REGISTERED TAXPAYER-AAAR RAJASTHAN”

RAJASTHAN APPELLATE AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Before the Bench of

1, Sh- Rakesh Kumar Sharma, Member(Central Tax)

2, Dr. Preetam B. Yashvant, Member(State Tax)

CASE TITLE:- M/S IMF Cognitive Technology Private Limited

(GST AAAR RAJASTHAN)

Appeal No. RAJ/AAAR/APP/08/2018-19 dated12.02.2019

Advance Ruling No.RAJ/AAR/2018-19/30 dated 09.01.2019

DATE OF JUDGEMENT-8th May 2019

BRIFE OF FACT

M/s IMF Cognitive Technology Pvt. Ltd., Jaipur, engaged in software development and export, claimed ITC of CGST paid in Haryana on hotel accommodation services used for business meetings. The Rajasthan AAR denied credit on the ground that both supplier and place of supply were outside Rajasthan. On appeal, the AAAR upheld the ruling, holding that ITC of CGST is admissible only if supplier location and place of supply are in the same state where the recipient is registered. Accordingly, ITC of CGST paid in Haryana was not admissible to the appellant registered in Rajasthan.

IMPORTENT PARAGRAPHS

Para No-14 We find a piquant situation here . Piquant in the sense that the Appellant is asking for the ITC of only Central tax paid in Haryana . It means that they are sure that ITC of the State GST paid in Haryana is not admissible to them. This is true also because State GST Act of Rajasthan ( i.e. RGST Act) allows ITC of only State GST paid in Rajasthan . In the GST Law, we find that both of these taxes i.e Central GST and State GST go hand in hand . Wherever Central GST is applicable , State GST is also applicable. No situation has been contemplated where one of these tax is applicable but another not. In nutshell if any event attracts Central GST , it would also attract State GST. From this, it naturally flows that if ITC of State GST is not admissible , ITC of Central GST should also not be admissible . But we have to find out whether Law specifically bar this or not.

Para No-19 From above we find that credit of input tax is admissible to a registered person, subject to conditions and restrictions , and input tax inter alia is Central tax charged on inward supply of a registered person. Going further, Central tax is Central GST levied under Section 9 of the CGST Act. After going through the Section 9(1) above, we find that the Central GST is a tax levied on all intra-State supplies of goods or services or both ——–. Going ahead, Intra-state supply of service , as per Section 8(2) of the Integrated GST Act, 2017 means supply of services where the location of the supplier and place of supply of services are in the same State. Thus crux of the matter is that for a person registered in Rajasthan, Central GST or Central tax is a tax levied under Section 9 ibid on supplies having both location of the supplier and place of supply in Rajasthan . At this point it becomes absolutely clear that ITC of the Central GST or Central tax would be available to a person registered in Rajasthan if the location of the supplier and place of supply of the services are in Rajasthan . In other words , ITC of the Central tax charged from the Appellant in Haryana is not available to them as in this case both the location of the supplier and place of supply of the services are in the State ofHaryana. Accordingly we pass the following order.

ORDER

Para No-20 We uphold the Advance Ruling rendered by the Rajasthan Authority for Advance Ruling, Goods and Services Tax, Jaipur vide their Ruling No.RAJ/AAR/2018-19/30 dated 09.01.2019, in respect of ITC of the Central GST paid in Haryana, which has been held as “not admissible” to the Appellant. Consequently , the Appeal filed by the Applicant/Appellant i.e. M/S IMF Cognitive Technology Private Limited, Jaipur is not legally sustainable and hence is liable to be dismissed and we hold accordingly.