Q.67 under expansion project we have issued PO to the building contractor for construction of factory building. PO is on works contract basis. Can I take ITC on GST paid to the contractor

Ans. In accordance with the provisions under Section 17(5) of the CGST Act, 2017,

(c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service;

(d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.

Explanation– For the purposes of clauses (c) and (d), the expression -construction includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property;

Therefore in both the cases I.e. input tax credit on construction services as well as works contract service are not allowed. Here, works contract service is not used for further supply of works contract services, hence credit shall not be allowed.

66 Exempt goods per GST no llena must ha kya 

Ans. As per Section 23 of the CGST Act, 2017:

(a) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;

Therefore, in case  you are not supplying goods or services or both which are taxable and exclusively dealing in exempted goods or services or both, then there is no requirement to take GST registration.

Q.65 In case of bill to ship to concept, we know 3 parties are involve in transaction. To maintain business secrecy original buyer does not want the ship to party know the value or from where the material is coming? Can you suggestion what is best way to generate eway bill to maintain secrecy among all three parties.

Ans. Where there are 3 parties involved and keeping in mind the secrecy of rates, any of the parties can issue E Way. The situation can be analyzed as:

 In a typical “Bill To” & “Ship To” model of supply, there are three persons involved in a transaction, namely:

• “A”is the person who has ordered “B”to send goods directly to “C”.
• “B” is the person who is sending goods directly to “C”on behalf of “A”.
• “C”is the recipient of goods. In this complete scenario two supplies are involved and accordingly two tax invoices are required to be issued:

• Invoice-1– which would be issued by “B” to “A”.
• Invoice-2- which would be issued by “A”to “C”.

This issue was also clarified by the department in its press release dated 23^rd April 2018, it was stated that any one can issue E way Bill either by the ultimate supplier “B” while sending goods to the customer “C” on instruction of primary supplier “A”. The possible case are stated below for understanding:

 Case -1: Where e-Way Bill is generated by „B‟, the following fields shall be filled in Part A of GST FORM EWB-01:

 Case -2: Where e-Way Bill is generated by “A”, the following fields shall be filled in Part A of GST FORM EWB-01:

It is further suggested to take a written opinion  on this issue, if required for better clarity.