2019 (3) TMI 148 - AAR - GST

Maintainability of Advance Ruling application - applicable fee not paid - Circular No. 25/25/2017-GST - Held that - It is mandatory as section 97(1) read with Rule 104 of the CGST/MGST Act to pay applicable fee of ₹ 5000/- each under SGST and CGST Act to be deposited as per the provision of Section 49 of the Act. If not the application would be treated as an incomplete application liable for rejection - In the instant case, applicant has deposited only a fee of ₹ 5000/- and not the full amount. As such application is incomplete and is liable for rejection - application for Advance Ruling rejected as being not maintainable.

Summary

Issues involved:
1. Interpretation of notification no. 01/2018 - Central Tax (Rate) dated 25th January, 2018.
2. Determination of applicable GST rate for construction services in a residential project.

Analysis:
1. The applicant sought an advance ruling on whether a concessional GST rate of 6% can be charged under notification no. 01/2018 - Central Tax (Rate) for works contract services, even if the project is not registered with any central or state authorities. The applicant argued that as per the definition of composite supply of works contract, the concessional rate can be applied to projects within the scope of notification F No. 13/6/2009 INF, dated 30 March, 2017. However, the Authority observed a shortfall in the application fee payment, rendering the application incomplete and liable for rejection under section 97(1) read with Rule 104 of the CGST/MGST Act.

2. The second issue revolved around the determination of the GST rate applicable to construction services provided by the applicant for low-cost housing projects. The applicant contended that based on a press release by the Ministry of Finance, a concessional rate of 8% (net of land) should be applied to low-cost houses up to a carpet area of 60sqm in projects with infrastructure status. Despite the applicant's interpretation, the Authority emphasized the mandatory requirement of paying the full application fee of ?5000 each under SGST and CGST Act, as per Circular No. 25/25/2017-GST, failing which the application would be considered incomplete and subject to rejection.

In conclusion, the Authority rejected the application for advance ruling as not maintainable due to the incomplete payment of the required fee, highlighting the significance of adhering to procedural requirements for such applications under the CGST and MGST Acts.