The Maharashtra Authority for Advance ruling has recently stated the decision for the Nagpur waste-water management Pvt ltd which had sorted the answers for the issues and queries of its business-related input tax credit and GST payment to the parties.
The Nagpur waste-water management private limited is a private limited company that is registered under the companies act which is also registered under the CGST act 2017 and Maharashtra GST act 2017.
The company has asked some of the questions based on royalty taxable when paid to the NMC if yes, then is it forward charge or reverse charge and can the input tax credit be available?
The contentions and facts were presented both by the applicant as well as the officer with the interpretation of the laws with multiple notifications and circulars.
Under section 98 of the central goods and services tax act 2017and Maharashtra goods and services tax act 2017, the order of the final decision has been given in the question-answer list.
As per the queries, the first question was that the royalty paid to the Nagpur municipal corporation (NMC) for supplying the tertiary treated water to Mahagenco is a service and it has been answered in the affirmative.
The second question asked whether the tax paid to the NMC is under the forward charge or the same has to be paid by the applicant under the reverse charge? This answer was done as the taxes are to be paid by the applicant under the reverse charge mechanism (RCM) and the NMC will not be liable to pay the taxes on the subject transactions in the discussion.
Coming to the third and last question was that the tax is to be paid with the input tax credit entitlement? The order mentioned that the ITC is available to the applicable if he sufficiently fulfils the conditions mentioned in sections 16 to 21 of the CGST/MGST act 2017.
