Subject: Clarification on various issue pertaining to GST-reg.
Various representations have been received from the field formations seeking clarification on certain issues with respect to,-
i. refund claimed by the recipients of supplies regarded as deemed export;
ii. interpretation of Section 17(5) of the Goa GST Act;
iii. perquisites provided by employer to the employees as per contractual agreement; and
iv. utilisation of the amounts available in the electronic credit ledger and the electronic cash ledger for payment of tax and other liabilities.
2. In order to clarify the issue and to ensure uniformity in the implementation of the provisions of law across the field formations, the undersigned, in exercise of its powers conferred by Section 168 of the Goa Goods and Services Tax Act, 2017 (hereinafter referred to as "Goa GST Act"), hereby clarify the issues as under:
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2. The said amendment in sub-section (5) of Section 17 of the Goa GST Act was made based on the recommendations of GST Council in its 28th meeting. The intent of the said amendment in sub-section (5) of Section 17, as recommended by the GST Council in its 28th meeting, was made known to the trade and industry through the Press Note on Recommendations made during the 28th meeting of the GST Council, dated 21-07-2018. It had been clarified "that scope of input tax credit is being widened, and it would now be made available in respect of Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force."
3. Accordingly, it is clarified that the proviso after sub-clause (iii) of clause (b) of sub-section (5) of Section 17 of the Goa GST Act is applicable to the whole of clause (b) of sub-section (5) of Section 17 of the Goa GST Act.
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2. It is clarified that "leasing" referred in sub-clause (i) of clause (b) of sub-section (5) of Section 17 refers to leasing of motor vehicles, vessels and aircrafts only and not to leasing of any other items. Accordingly, availment of ITC is not barred under sub-clause (i) of clause (b) of sub-section (5) of Section 17 of the Goa GST Act in case of leasing, other than leasing of motor vehicles, vessels and aircrafts.
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2. Any perquisites provided by the employer to its employees in terms of contractual agreement entered into between the employer and the employee are in lieu of the services provided by employee to the employer in relation to his employment. It follows therefrom that perquisites provided by the employer to the employee in terms of contractual agreement entered into between the employer and the employee, will not be subjected to GST when the same are provided in terms of the contract between the employer and employee.
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2. Sub-rule (2) of Rule 86 of the Goa GST Rules provides for debiting of the electronic credit ledger to the extent of discharge of any liability in accordance with the provisions of Section 49 or Section 49A or Section 49B of the Goa GST Act.
3. Further, output tax in relation to a taxable person (i.e. a person who is registered or liable to be registered under Section 22 or Section 24 of the Goa GST Act) is defined in clause (82) of Section 2 of the Goa GST Act as the tax chargeable on taxable supply of goods or services or both but excludes tax payable on reverse charge mechanism.
4. Accordingly, it is clarified that any payment towards output tax, whether self-assessed in the return or payable as a consequence of any proceeding instituted under the provisions of GST Laws, can be made by utilization of the amount available in the electronic credit ledger of a registered person.
5. It is further reiterated that as output tax does not include tax payable under reverse charge mechanism, implying thereby that the electronic credit ledger cannot be used for making payment of any tax which is payable under reverse charge mechanism.
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3. Difficulties, if any, in implementation of these instructions may be informed to the undersigned.
Ruchika Katyal, IAS,
Commissioner of State Taxes, Goa.
Note: Similar circular is issued under Central Goods and Services Tax Act, 2017 by the GST Policy wing, Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, GOI, New Delhi vide Circular No. 172/04/2022-GST dated 06th July, 2022.