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2021 (7) TMI 547 - AAR - GSTScope of Advance Ruling application - Liability of GST - supplies undertaken by M/s. Mysore Stoneware Pipes and potteries Private Limited and not with respect to the supplies undertaken by the applicant - service under Clause 5(b) of Schedule (II) of CGST Act 2017, Schedule (III) of CGST Act 2017 - HELD THAT - It could be easily inferred from Section 95(a) of the CGST Act, 2017 that any person registered or desirous of obtaining registration under CGST Act 2017 can seek advance ruling only in relation to the supply of goods or services or both being undertaken or proposed to be undertaken. In the instant case, the applicant has sought advance ruling in respect of the supplies undertaken by M/s. Mysore Stoneware Pipes and potteries Private Limited and not with respect to the supplies undertaken by the applicant. Thus the application is not admissible and liable for rejection in terms of Section 98(2) of the CGST Act, 2017. The application is hereby rejected as inadmissible , in terms of Section 98(2) of the CGST Act, 2017.
Issues:
- Admissibility of the advance ruling application regarding liability to pay tax on service under specific clauses of the CGST Act 2017. Analysis: The applicant, engaged in support engineering service and dealing in CNC machines and cutting tools, sought an advance ruling on the liability to pay tax on services under specific clauses of the CGST Act 2017 related to the change in business operations of M/s. Mysore Stoneware Pipes and potteries Limited. The company transitioned into real estate activities, obtained necessary approvals, entered into a joint development agreement, and sold developed sites to purchasers. The applicant highlighted ongoing shareholder disputes before the NCLT and sought clarity on the applicability or exemption of GST on transactions related to the sale of assets. During the personal hearing, the applicant reiterated the facts stated in the application. The ruling authority clarified that any person seeking an advance ruling under the CGST Act 2017 can only do so in relation to the supply of goods or services undertaken or proposed by the applicant. In this case, the applicant sought a ruling regarding supplies undertaken by M/s. Mysore Stoneware Pipes and potteries Private Limited, not by the applicant themselves. Therefore, the application was deemed inadmissible and rejected under Section 98(2) of the CGST Act 2017. The ruling concluded by rejecting the application as "inadmissible" based on the specified legal provision. This judgment emphasizes the importance of aligning the subject of an advance ruling application with the provisions of the relevant tax laws. It underscores the need for applicants to ensure that the questions posed for ruling directly pertain to the goods or services they are involved in supplying or intend to supply. Failure to meet this criterion can lead to the rejection of the application on grounds of inadmissibility, as demonstrated in this case.
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