Question22:

We are having two queries regarding GST:

1. We having one solar unit supplying electricity to manufacturing unit without charging GST. However, we are having input credit of GST charged on supply of equipment for solar pant and some ITC on account of services received by us. Can we get the refund of such GST paid on capital purchase and input services.

2. We have not migrated to GST using our excise number. Now GST portal of Tran1 is not showing our credit of Cenvat. We are trying to upload amendment mentioning Excise no. But it is showing error while putting digital signature. Last date for filing of Trans 1 is 27.12.2017. How can we protect us if we are not able to file Trans 1.

Your reply will be highly appreciated.  

Answer:

We under stood your query as follow 

You have some manufacturing unit and also one solar plant which generate electricity to be used by the manufacturing unit

These two units are located separately may be in adjacent area You have not migrated the solar plant which was registered under central excise but you have migrated the number of other unit now the  ITC balance of solar plant is stuck up

According to  above understanding our reply is as follow

You have one PAN no for all the units so you should take single registration for all the units . As per section 139(1) every registered person was required to migrate under the GST so you are supposed migrate 

your registration with  process of migration in single registration all the credit will come to new number

Section 139: Migration of existing taxpayers. 

(1) On and from the appointed day, every person registered under any of the existing laws and having a valid Permanent Account Number shall be issued a certificate of registration on provisional basis, subject to such conditions and in such form and manner as may be prescribed, which unless replaced by a final certificate of registration under sub-section (2), shall be liable to be cancelled if the conditions so prescribed are not complied with. Now the question is whether you can claim credit of inputs and capital goods used  to manufacture electricity which in turn used to in manufacturing plant for supply of taxable outward supply.

Please note that earlier excise was on manufacturing and sales tax was on sale of goods but now the concept of supply is used the concept of captive consumption and intermediate goods is no more so the credit on inputs of solar plant should be available to you because ultimately this is used for providing of out ward taxable supply within the same registration .

The credit can't be disallowed on the argument that during the process some intermediate product is generated which is captive consumed without payment of tax. (Reply Dt. 23/12/2017)