2019 (5) TMI 1851 - AAR - GST

Exemption from GST - party failed to comply these instructions and not deposited the required fee in proper heads till date - HELD THAT - The payment of ₹ 10,000/- was made to SGST only instead of ₹ 5,000/- each to SGST and CGST. As Section 97(1) r/w Rule 104 of the CGST/SGST Act, the applicant is liable to pay fee of ₹ 5,000/- under each Act to be deposited in manner provided u/s. 49 of CGST Act. Failing such compliance, an application is incomplete and thus liable to be rejected. In the present case, the applicant deposited ₹ 10,000/- only in the name of SGST and did not deposit the required amount i.e., ₹ 5,000/- each to SGST CGST, despite being given opportunity to cure such defect. Hence, the application is liable for rejection. The application for Advance Ruling in Form GST ARA-01 of M/s. Awas Bandhu, Lucknow, U.P., dated 29-3-2019 is hereby rejected.

Summary

Issues:
Application for Advance Ruling under GST - Compliance with fee payment requirements.

Analysis:
The applicant, a registered assessee under GST, provides services to assist the U.P. Housing Ministry in policy implementation for housing across income groups. The applicant sought clarification on whether their activities are exempt from GST. They submitted an application for Advance Ruling along with a fee of ?10,000 to the State GST. However, the applicant failed to comply with the instructions to pay ?5,000 each to SGST and CGST. The authorities noted that the applicant's payment of ?10,000 was made only to SGST, contrary to the requirement of ?5,000 each to SGST and CGST as per Section 97(1) read with Rule 104 of the CGST/SGST Act. The failure to pay the required amounts to both entities rendered the application incomplete and subject to rejection. Despite being given an opportunity to rectify the deficiency, the applicant did not fulfill the fee payment criteria, leading to the unanimous decision by both members to reject the application for Advance Ruling submitted by M/s. Awas Bandhu, Lucknow, U.P., dated 29-3-2019.

This judgment emphasizes the importance of compliance with fee payment requirements under the GST laws, specifically highlighting the necessity to adhere to the prescribed payment structure for SGST and CGST. The ruling underscores that failure to meet these obligations can result in the rejection of an application for Advance Ruling. The decision was based on the provisions of Section 97(1) in conjunction with Rule 104 of the CGST/SGST Act, which clearly outline the obligation to pay fees under each Act in the manner specified by Section 49 of the CGST Act. The judgment serves as a reminder to applicants to ensure full compliance with statutory provisions and procedural requirements to avoid the rejection of their applications for Advance Ruling.