Advance Ruling No. AAR/AP/6/GST/2018 In Application No.AAR/7/GST/2018 Dated 8th June, 2018


for the State of Andhra Pradesh ( Goods and Service Tax )

(5th Floor, O/o Chief Commissioner of Commercial Taxes, D.No:5-56, Block-B, R.K Spring Valley Apartments, Edupugallu, Vijayawada-521151.)


Sri. J.V.M Sarma (Member)

Sri.Amaresh Kumar (Member)

1 Applicant M/s INDIAN COTTON SOLUTIONS COM PRIVATE LIMITED (GSTIN-.37AADCI7003D1ZZ] D.No4-5-60/2/A. Main Lane. Saibaba Rood. Guntur - 522007.
2 Jurisdictional Officer Assistant Commissioner [State Tax). Bradipet Circle,
3 Present for the Applicant M.Gopi Krishna
4 Present for the Jurisdictional Officer Not attended
5 Date of Personal hearing 04.0-5.2018

Note: Under Section 100 of the APGST Act 2017, an appeal against this ruling lies before the appellate authority for advance ruling constituted under section 99 of APGST Act' 201 7, within a period of 30 days from the date of service of this order.

M/s INDIAN COTTON SOLUTlONS.COM PRIVATE LIMITED, (hereinafter also referred as applicant), having GSTIIN 37AADCI7003D1ZZ are engaged In supply of service by providing Mobile Laboratory Services, to test the quality of Cotton.

The applicant has filed an application in form GST ARA-01. dated 20.03.2018, for seeking advance ruling on 'Admissibility of input tax credit of tax paid or deemed to have been paid'. The question is as follows.

"Whether they can utilize /refund the ITC which is already available in GST Portal, for the vehicles purchased by them for the purpose of their core business activity?"

On verification of basic information of the applicant it is observed that the applicant falls under State jurisdiction. i.e Brodipet Circle, of Narasroopet Division as per the bifurcation lists of tax payers between the Centre and State in the prescribed manner). accordingly, the application has been forwarded to the jurisdictional officers and also a copy marked to the Central Tax authorities to offer their remarks as per the Sec. 98(1) of CGST / APGST Act 2017, and requested for the information.

In response to this communication, the concerned Jurisdictional officer offered their remarks, and stated that there were no proceedings pending relating to the applicant, and no proceedings were passed on the issue, for which the advance ruling sought by the applicant.

A personal hearing is called for on 04.04.2018, to hear from the applicant, Sri. M.Gopi Krishna, authorized representative had attended on behalf of the applicant and submitted the facts of case. It is submitted that the firm purchased five vehicles to use as mobile cotton labs, for the purpose of testing of quality of cotton, it is argued that, the business itself is testing and the lab ( launched on vehicles ) are to be considered as prime business components, without which there can not be any supply of services. Hence to be considered as eligible for ITC.

We have gone through the application filed by the applicant. and after careful examination of the said issue, this authority is of the opinion, that the Input Tax Credit on the vehicles purchased by the applicant for the purpose of their business will fall under Sec. 17(5), and given the ruling accordingly. The text of See 17(5) is as under..

"Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) or section 18, input tax credit shall not be available in respect of the following, namely: (a) motor vehicles and other conveyances except when they are used -(i) for making the following taxable supplies, namely:- [A] further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances; (ii) for transportation of goods".


It is clear from the plain reading of the section, that the goods referred by the applicant do not fall under the exceptions referred in Sec.17(5) of CGST/ APGST Act'2017, Hence the applicant is not entitled for claim of ITC.

Sd/- (J.V. M .SARMA)

Member- State Tax

Joint Commissioner (State Taxes),

Authority for Advance Ruling,

Andhra Pradesh.


Member- Central Tax

Joint Commissioner (Central Taxes),

Authority for Advance Ruling

Andhra Pradesh