Registration & Input Credit

GST QuestionsCategory: Migration and RegistrationRegistration & Input Credit
Nikunj Sharma asked 12 months ago

ABC, who is engaged in the business of supplying of natural gas, awards the works contract for laying of pipeline from Gujarat to Delhi, via Rajasthan and Haryana. ABC has its place of business in Maharashtra and Delhi.

In how many States, ABC would require registration under the GST?

Further, whether ABC would be eligible to claim input tax credit in respect of works contract executed in the State of Rajasthan and Haryana?

2 Answers
sewak das answered 12 months ago

Legislative power to impose GST is provided in article 246A. Power of making law on GST is subject to article 279A.

As per article 279A – clause 5 of the constitution 101th amendment act 2016 –

" The GST council shall recommend the date on which the GST be levied on petroleum crude, HSD, motor spirit, natural gas and turbine fuel."

Till date GST council have not recommended any date on above products. As there is no consensus between states as to rates of taxes and hence as of now GST is not leviable on the above products.

In the above case since natural gas is outside the scope of GST , ABC would not required any registration.

Further, he would not be eligible for ITC since its inputs would be subject to GST and outputs would be subject to VAT.

jgaonkar answered 6 months ago

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