Q. 257 One of my clinet doing cash management agency, i.e., Cash deposit in ATM. For that purpose of cash depositing, he purchased a cash carry van. Can he eligible to claim ITC on that purchase. Kindly Clarify.

Ans- According to Section 17(5)(a) of CGST Act, 2017, input tax credit on motor vehicles and other conveyance is not available; however, the exception has been carved out inter-alia to the motor vehicles and other conveyances used for transportation of goods. As per section 2 “Goods” means every kind of movable property other than money and securities but includes actionable claims, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under contract of supply;” The currency transported is for the purpose of carrying out the business of maintaining ATMs and it is not used for consideration for settling of any obligation. Hence it will not cover under definition of money. That means , you can claim ITC of cash carry van as it covered under transportation of Goods ITC under Section 17(5) of CGST Act ,2017

Q. 256  we intend to purchase gugaon ferro grade falls under hsn code 26020040 on which royalty charges 5% on basic charges on which they have been charging MSGST 18% Request to clarify will gst attract on Royalty charges. 

Ans – There has been debate on the issue of whether GST is payable on royalty paid by the holder of mineral lease or mining lease or other mineral concession granted for.This issue was prevalent even under service tax regime. The Supreme Court had imposed a stay on the stand taken by the Rajasthan High Court in the matter of Udaipur Chamber of Commerce Vs. Union of India in the erstwhile regime with respect to levy of Service Tax on Royalty paid on mining operations. This issue is also debatable under the GST regime completely based on fact to fact basis.

Q. 255 sir i am dealing advertisement google face book provide export services with payment can i claim refund against this services we have no input tax credit if exports of services with payment pay tax?

Ans.  Refund can be claimed in respect of tax paid on export of service.