Q.13 whether input of tractor allowed in the business of interlocking tiles. We will use it as a generator starter as well as loading unloading of tiles. please clarify if is it covered under blocked credit under section 17 (5) or not? 

Ans. In accordance with the provisions laid under Section 17(5) of the CGST Act, 2017, the Input Tax Credit shall not be available in respect of the following:

(a)[motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:-

(A) further supply of such motor vehicles; or

(B) transportation of passengers; or

(C) imparting training on driving such motor vehicles;

(aa) vessels and aircraft except when they are used-

       (i) for making the following taxable supplies, namely:-

(A) further supply of such vessels or aircraft; or

(B) transportation of passengers; or

(C) imparting training on navigating such vessels; or

(D) imparting training on flying such aircraft;

        (ii) for transportation of goods;

It is explicit from the aforesaid provision that Input Tax Credit of Motor Vehicle is allowed only if it is used for making specific supplies. In your case it is being used as fixed asset to be used for multiple purpose which includes as generator starter as well as unloading of tiles, therefore it is prima facie a matter of fact that needs to be proved before the authority that the same is used for transportation of goods primarily and the Input Credit should be allowed.

Q.12 What has to be entered in the field ‘Place of Filing LUT’ while making the LUT application. Is it the place of registration as per Reg. Cert. or place where the authorised signatory is present when filing the LUT application?

Ans. Earlier, the place of filing of LUT was material when such filing was being done manually. Now, the process of filing of LUT is entirely online, therefore ideally the place of filing should be that of the principal place of business as per the registration certificate.

Q.11 Respected Sir

Pls guide me about Rcm on freight payment on delivery of tax free goods. 

Ans. Supply of tax free goods and delivery of tax free goods are two different supplies if invoices are raised separately.

Further the services of GTA are exempt in case of transportation of certain notified goods, like agricultural produce, milk, salt, newspaper, organic manure, defense material etc. In case the goods being supplied are other than notified goods, freight payment will attract RCM, even if the goods being supplied are tax free. It is to be noted that RCM is simply a mechanism to discharge the liability of GST, if liability on Freight charges is exempted by virtue of exemption notification, in that case only RCM liability will not arise.