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2019 (12) TMI 166 - AAR - GSTScope of Advance Ruling application - section 98(2) of the GST Act - levy of GST on electricity charges - whether the Licensor can collect GST from the Applicant on electricity charges - HELD THAT - In terms of section 95(a) of the Central Goods and Services Act, 2017 or West Bengal Goods and Services Act, 2017 an advance ruling means a decision provided by this Authority or the Appellate Authority, as the case may be, on matters or on questions specified in section 97(2) or section 100(1) of the GST Act in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the Applicant. The Applicant's question is related to the components of the amount that the Licensor, as supplier of the service of leasing of immovable property, is charging on it. They are not related to the supplies the Applicant makes or intends to make. This Authority cannot, therefore, provide a decision to the Applicant in the form of an advance ruling - Application is rejected in terms of section 98(2) of the GST Act.
Issues Involved:
1. Liability to pay GST on electricity charges. 2. The ability of the Licensor to collect GST from the Applicant on electricity charges. Analysis: Issue 1: Liability to pay GST on electricity charges The Applicant sought a ruling on whether they are liable to pay GST on electricity charges and whether the Licensor can collect GST from them on these charges. The agreement between the Applicant and the Licensor required the Applicant to reimburse the electricity charges consumed at actuals. However, the Licensor also charged GST on the electricity charges, claiming to be supplying electricity to the Applicant. The Authority for Advance Ruling examined this issue in the context of the GST Act. Issue 2: Licensor's ability to collect GST from the Applicant on electricity charges The Authority for Advance Ruling pointed out that the Applicant's question regarding the components of the amount charged by the Licensor, as the supplier of the service of leasing immovable property, did not directly relate to the supplies made or intended to be made by the Applicant. As per the provisions of the GST Act, an advance ruling pertains to matters or questions specified in the Act in relation to the supply of goods or services undertaken or proposed by the Applicant. Therefore, the Authority concluded that it could not provide a decision to the Applicant in the form of an advance ruling on this matter. In conclusion, the application seeking a ruling on the liability to pay GST on electricity charges and the Licensor's ability to collect GST on these charges was rejected by the Authority for Advance Ruling in accordance with section 98(2) of the GST Act. The decision was based on the understanding that the components of the amount charged by the Licensor did not directly pertain to the supplies made or intended to be made by the Applicant, falling outside the scope of an advance ruling by the Authority.
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