Page 11 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] INDEX - 7th May, 2020 ix
HSN Explanatory Notes - Scope in classification of goods - See under
CLASSIFICATION ................................. 128
Incentive to distributors in form of Gifts, ITC not admissible - See under
INPUT TAX CREDIT (ITC) ............................ 135
INCOME TAX ACT, 1961 :
— Section 12AA - See under GST REGISTRATION ................. 104
— Section 80G - See under GST REGISTRATION .................. 104
Input Tax Credit (ITC) admissibility on supply of accommodation, food and
beverage service - See under SUPPLY ...................... 140
— “Bunds”/“Crystallizers” constructed and used in manufacture of salt and
bromine chemicals - All types of Salt fall under GST HSN Code 2501,
which attract nil rate (0%) of GST - However, salt manufactured by
applicant alleged to be ‘zero-rated supply’ under Section 16 of Integrated
Goods and Services Tax Act, 2017, being required to be exported - Input
tax credit is available as per Section 16(2) ibid on inputs and input
services to make zero-rated supplies (such supply may be an exempt
supply), subject to the provisions of sub-section (5) of Section 17 of
Central Goods and Services Tax Act, 2017 - Accordingly, input tax credit
of GST paid on goods and services used to construct the “bunds” is
admissible provided bunds used for making zero-rated supplies and
fulfil the conditions necessary for treating the bunds as “plant and
machinery” - Clauses (c) and (d) of Section 17(5) of Central Goods and
Services Tax Act, 2017 — In Re : Satyesh Brinechem Private Limited (A.A.R. - GST -
Guj.) .......................................... 94
— Expenses incurred by applicant for providing common facilities to their
employees within the residential colony where quarter given on nominal
fees, i.e., Hospitals, Sports Complex, Garden, Guest House for official
visitors and school for employee’s children but the same is not related to
furtherance of their business/output service, i.e., port service - Applicant
not entitled to take credit of input tax charged in respect of these
expenses - Sections 16(1) and 17(1) of Central Goods and Services Tax
Act, 2017 — In Re : Kandla Port Trust (A.A.R. - GST - Guj.) ............... 126
— Motor vehicle purchased for transport of Director and Employees - ITC
not available in respect of insurance and maintenance of these motor
vehicles as per Section 17(5)(a) of Central Goods and Services Tax Act,
2017 — In Re : Moksh Agarbatti Co. (A.A.R. - GST - Guj.) ................. 135
— One unit of Agarbatti offered free on purchase of 1 Carton Box full of
Agarbatti - ITC not available in respect of goods offered by way of gift -
Section 17(5)(h) of Central Goods and Services Tax Act, 2017 — In Re :
Moksh Agarbatti Co. (A.A.R. - GST - Guj.) ......................... 135
— One unit of Dhoop offered with a pack of Agarbatti (consisting of 10
pieces of Agarbatti) - Goods offered by way of gift not eligible for Input
Tax Credit (ITC) as per Section 17(5)(h) of Central Goods and Services
Tax Act, 2017 - ITC not available in respect of inputs used for
manufacture of Dhoop or purchase of dhoop from a third party vendor
— In Re : Moksh Agarbatti Co. (A.A.R. - GST - Guj.) .................... 135
— Target based monetary and non-monetary incentives like say Pressure
Cooker on purchase of 1,00,000 Agarbatti Packets, offered to distributors
as part of the Sales Promotion campaign - ITC not available in respect of
GST LAW TIMES  7th May 2020  11