KSEBL Eligible for Direct Input Tax Credit on Deposit Work: AAR [Read Order]
KSEBL Eligible for Direct – Input Tax Credit on Deposit Work – AAR – TAXSCAN
KSEBL Eligible for Direct – Input Tax Credit on Deposit Work – AAR – TAXSCAN
The Kerala Authority for Advance Ruling(KAAR) has held that Kerala State Electricity Board Ltd(KSEBL) is eligible for direct Input Credit on Deposit Work.
The Kerala State Electricity Board Limited, the applicant is carrying out the business of generation, transmission, and distribution of electricity in the State of Kerala. It was clarified that the provisions of the Central Goods and Services Tax Act, 2017 (CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (KSGST Act) are the same except for certain provisions.
Accordingly, a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under.
The analysis of the rulings shows that certain questions were deemed irrelevant or not within the scope of the ruling. However, it confirmed that KSEBL is eligible for availing direct input tax credit on deposit works, subject to the conditions and restrictions outlined in the CGST Act, 2017 and CGST Rules, 2017.
The applicant in addition to the routine activity of transmission and distribution of power, also undertakes to do those works in relation to transmission and distribution of electricity as per the request of the Consumers Such works are commonly termed Deposit Works as the work is undertaken after accepting the cost of work as a deposit from the consumer
It also establishes the liability of KSEBL to pay GST under reverse charge for rent-a-cab services received from unregistered suppliers. Additionally, the ruling provides guidance on the timing of issuing tax invoices for deposit works and the discharge of GST for advance payments received.
Therefore, in terms of provisions of sub-section (2) of Section 31 of the CGST Act, 2017 read with Rule 47 of the CGST Rules, 2017 the applicant shall issue a tax invoice in respect of the supply of services namely; “Deposit Works” within 30 days from the date of supply of the service.
The applicant is eligible for availing credit of tax paid on the inward supply of inputs, input services and capital goods used or intended to be used for the purpose of the outward supply of services, Deposit Works, subject to the conditions and restrictions prescribed in Sections 16 and 17 of the CGST Act, 2017 read with Rules 42 and 43 of the CGST Rules, 2017.
The Authority comprising of Dr.S.L. Sreeparvathy, IRS &Shri. Abraham Renn S, IRS held that the applicant is liable to pay GST as the recipient of services in respect of the services of renting any motor vehicle designed to carry passengers received from any person other than a body corporate, irrespective of the status of registration of the supplier as per entry at SI. No. 15 of Notification No. 13/2017 CT (Rate) dated 28.06.2017 as amended.
To Read the full text of the Order CLICK HERE
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