TN AAAR: Transitional Credit Eligibility Out of Advance Ruling Ambit

The Tamil Nadu Appellate Authority of Advance Ruling (AAAR) held that the problem of eligibility of Transitional Credit is not within the purview of the Advance Ruling.

The petitioner Shapoorji Pallonji and Company Private Limited seeks the advance ruling upon the problem that the Transitional Provision under Section 142(11)(c), (Chapter XX) of TNGST Act, 2017/CGST Act, 2017 has been executed in the right manner towards the left installments of “Mobilization Advance’, which changed into the GST regime and to be managed or deducted by them after the GST execution that is after July 1, 2017)

The other problem was if they will be entitled to filed GST beneath the plan of TNGST Act, 2017/CGST Act, 2017 and allied statutory upon the installments of the ‘Mobilization Advance’, that have been changed into the GST regime and handled or deducted by them after the GST execution.

At last, the petitioner seeks the advance ruling if they will be entitled to claim the ITC on the service tax filed that is transferred via pre GST period via TRAN 1 Return Get the easy guide for online filing GST TRAN 1 form in a step by step process. We have also break down the each part of form for easy understanding filed in terms of section 142(11)(c), under Transitional Provisions (Chapter XX) of both TNGST Act, 2017/CGST Act, 2017.

AAR held that the Transitional Provisions beneath Section has not been applied to the case on hand. The mobilization advance to the extent obtained before the GST execution for the work contract service supply has not been entitled towards the GST according to the provisions of Section 142(11)(b) of the GST Act 2017. There is no answer given for the eligibility to credit grounds on the transnational plan as it is not covered beneath the question where the advance ruling could seek beneath Section 97 (2) of the Act.

But discontented by the AAR’s decision the petitioner furnished the petition in the Appellate Authority for Advance Ruling (AAAR). The two Judges M.A.Siddique and G.V. Krishna Rao held that as per the Mobilization Advance transitioned into GST where no Service Tax is filed according to the Chapter V of Finance Act 1994, the problem is not being answered and is deemed to be that there is no ruling which is provided under Section 101 3 of the CGST TNGST Act 2017 due to the difference of the choice amid both the members.

“On the issue of eligibility of Transitional Credit, we hold that the same is not under the purview of the Advance Ruling,” he added.