RAJASTHAN AAR ALLOWS IGST INPUT TAX CREDIT ON BILL-TO SHIP-TO MODEL:- UMAX PACKAGING CASE

RAJASTHAN AAR ALLOWS IGST INPUT TAX CREDIT ON BILL-TO SHIP-TO MODEL :- UMAX PACKAGING CASE

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Title: M/s Umax Packaging

(GST AAR RAJASTHAN)

Advance Ruling No.RAJ/AAR/2018-19/23

Date of Judgment/ Order- 2nd November 2018

IMPORTANT PARAGRAPHS

Para No. 1. SUBMISSION OF THE APPLICANT:
a. The applicant is engaged in manufacture of plastic pouches in Jodhpur and is having GST registration number 08AAACU0748E1ZJ. The applicant proposes to purchase goods from M/s Uma Polymers Ltd., Guwahati and will further supply the said goods to M/s Pratap Snacks Ltd., Guwahati. The applicant will direct M/s Uma Polymers Ltd., Guwahati to deliver the goods to M/s Pratap Snacks Ltd., Guwahati. The present application is filed to seek advance ruling on the admissibility of input tax credit of IGST charged by M/s Uma Polymers Ltd., Guwahati to the applicant.
b. The applicant wish to ask whether they are entitled for availing the credit of IGST charged by M/s Uma Polymers Ltd., Guwahati in case of ‘Bill to’ “Ship to’ model and whether the input tax credit of IGST availed by them can be recovered subsequently, if it is concluded by the revenue authorities that M/s Uma Polymers Ltd., Guwahati was liable to charge CGST & SGST Guwahati instead of IGST?
Para No. 2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT
Whether ITC of IGST paid on bill to ship to’ model admissible to the applicant?

RULING

In view of the above stated facts, the applicant M/s Umax Packaging, Jodhpur is eligible to claim the input tax credit (ITC) of IGST paid on ‘bill to ship to’ model as per the relevant provisions of Section 16 and 17 of Chapter V of CGST Act, 2017.