Page 161 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : UTTAR BIHAR GRAMIN BANK 247
as it is an inward supply for the purpose of its banking business. To
avoid any future litigation, bank now seek advance ruling, whether
input credit of GST on this inward supply is just and proper under
the GST law?
2. vkosnd }kjk vkosnu ds Økekad 15 “Statement of relevant facts having
a bearing on the question(s) raised ds varxZr vyx ls tks rF; layXu fd, x, gS]
esa crk;k x;k gS fd :–

(i) The applicant has only business activity of banking and related fi-
nancial services and its certain outward supplies are chargeable to
GST. Applicant collects Goods and Service Tax, on its taxable out-
ward supplies and makes payment to the Government exchequers
as per provisions of the law.
(ii) As applicant also provides certain exempted services, therefore, it
exercises option given under Section 17(4) and avail only fifty per
cent. of eligible input tax credit on inputs, capital goods and input
services in a taxable period.
(iii) Accordingly, fifty per cent. of GST paid on DICGC premium is be-
ing availed by the applicant in a taxable period, as it is statutorily
required for the bank to obtain insurance of deposit, which has only
been accepted by it in the course of its business or furtherance of
business.
3. vkosnd ds vkosnu ls Li"V gS fd vkosnd }kjk CGST/SGST Act, 2017
dh /kkjk 17(4) esa fn, x, Option ds vuqlkj izfrekg miyC/k ITC dk 50 izfr’kr dk
mi;ksx fd;k tkrk gS ,oa bl vfxze fofu.kZ; vkosnu esa muds }kjk ,slk djus ds
fu;ekdwy gksus ds fcUnq ij vfxze fofu.kZ; ekWxk x;k gSA
4. vfxze fofu.kZ; gsrq fn, x, vkosnu ds fu"iknu gsrq loZizFke
CGST/SGST Act/Rule, 2017 ds varxZr Registered Person fo’ks"k dj cSfdxa dEiuh
}kjk Input Tax ds Credit fy, tkus ds Entitlement ds fy;s fd, x, izko/kku /kkjk
16] /kkjk 17 ,o Rule 38 dk voyksdu djuk gksxk] tks fuEuor gS :-
Section 16. Eligibility and conditions for taking input tax credit. -
(1) Every registered person shall, subject to such conditions and re-
strictions as may be prescribed and in the manner specified in section 49, be
entitled to take credit of input tax charged on any supply of goods or ser-
vices or both to him which are used or intended to be used in the course or
furtherance of his business and the said amount shall be credited to the
electronic credit ledger of such person.
(2) Notwithstanding anything contained in this section, no regis-
tered person shall be entitled to the credit of any input tax in respect of any
supply of goods or services or both to him unless,-
(a) he is in possession of a tax invoice or debit note issued by a
supplier registered under this Act, or such other tax paying
documents as may be prescribed;
(b) he has received the goods or services or both.
Explanation. - For the purposes of this clause, it shall be
deemed that the registered person has received the goods or,
as the case may be, services -
(i) where the goods are delivered by the supplier to a recipient or
any other person on the direction of such registered person,
GST LAW TIMES  13th August 2020  161