Question7: Referring to the trail mail, is this notification
applicable for stock transfer to the plant located in different state having
same PAN No.' Further, whether the supplying plant, where the ITC has been
availed @ 18% but the supply under this notification is @ 0.1%, will be eligible
for the entire 18% ITC to be utilized for other supplies' I shall be grateful
for your esteemed advice.
Answer: The Notification no 41/2017 dated 23.10.17 does not put any
restriction on the availment of ITC it is not like the earlier notification
issued in Central excise for payment of tax at the rate of 1% or 2% without
CENVAT on certain items like garments or mobile phone parts etc There is no
corresponding change in Section 16 or 17 or rules relating to ITC so our view is
that you can take credit and use it as in normal course (Reply dt. 26/10/2017)