Admissibility of Input Tax Credit of Tax paid or deemed to have been paid- AAR Uttarakhand

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Bahl Paper Mills Ltd  has requested for advance ruling on the questions which are discussed as under :

Whether under Reverse Charge Mechanism, IGST should be paid by the importer on ocean freight in case of CIF basis contract, when service provider and service recipient both are outside the territory of India : In this regard it is observed that vide notification no. 08/2017- Integrated Tax (Rate) dated 28.6.2017 and, notification no. 10/2017 – Integrated Tax (Rate) dated 28.6.2017 an importer is required to pay IGST on the ocean freight.

Supporting document for importer under RCM to take the credit of IGST paid on ocean freight under CIF basis contract: Credit of IGST paid can be taken on the basis of invoice/challan issued.

Whether credit will be available in GST of office fixtures & furniture, A.C. plant & sanitary fittings on newly constructed building on its own account for furtherance of business and accounting entry is capitalized in books of account: Cenvat Credit of GST paid in relation with building or any other civil structure is not available and since sanitary fittings are integral part of buiiding or any other civil structure, Cenvat Credit of GST paid on such sanitary fittings is not available. However credit of input tax charged on the supply of fixtures & furniture and A.C. plant is admissible under -CGST/SGST Act. 2017, provided that the registered person has not claimed depreciation on the tax component of the cost of the capital goods and plant and machinery under the provisions of the Income-Tax Act 1961.

Citation: Ruling No 03/2018-19 – dated – May 04, 2018 (AAR Uttarakhand)