2018 (9) TMI 695 - AAR - GST

Application for withdrawal of application - Supply or not? - Free tickets given as Complimentary tickets - Input tax credit - Whether free tickets given as Complimentary tickets falls within the definition of supply under the CGST Act 2017 and thus whether the Applicant is required to pay GST on such free tickets? Whether the Applicant is eligible to claim Input Tax Credit in respect of complimentary tickets? Held that - Though the questions raised in the application need a detailed discussion in view of the prevailing law, since the Applicant have sought withdrawal of application on their own volition, we do not think either appropriate or incumbent upon us to delve into the matter at length - Thus while allowing the Applicant to withdraw the instant application, we refrain ourselves from commenting upon the merits of the case. The Application for Advance Ruling filed by the Applicant is dismissed as withdrawn at the behest of the Applicant.

Summary

Issues involved:
1. Whether complimentary tickets provided by the applicant constitute a taxable supply under the CGST Act 2017?
2. Can the applicant claim Input Tax Credit (ITC) for the complimentary tickets provided?

Analysis:

Issue 1: Taxability of Complimentary Tickets
The applicant, a franchisee of the Board of Control for Cricket in India (BCCI), sought an advance ruling on whether providing complimentary tickets during cricket matches at Indore would attract GST. The applicant voluntarily withdrew the application after referring to a circular by the CBIC. The Authority refrained from expressing an opinion on the matter due to the withdrawal, emphasizing that the withdrawal does not prejudice any future actions under the relevant tax laws.

Issue 2: Input Tax Credit (ITC) Eligibility
The applicant also inquired about the eligibility to claim Input Tax Credit (ITC) for the complimentary tickets provided. However, the discussion on this issue did not take place as the applicant chose to withdraw the application. The Authority allowed the withdrawal without making any comments on the merits of the case, ensuring that the withdrawal does not affect any potential actions under the CGST Act 2017, IGST Act 2017, MPGST Act 2017, or any other applicable laws.

This judgment highlights the importance of seeking advance rulings on tax matters and the implications of voluntarily withdrawing such applications. The Authority's decision to dismiss the application as withdrawn underscores the need for clarity and compliance in tax-related activities, even when seeking guidance from the appropriate authorities.