2022 (1) TMI 302 - AAR - GST

Maintainability of Advance Ruling application - Levy of GST - Insurance premium paid towards launch services - MoF Notification No.09/ 2017-Integrated Tax (Rate) dated 28-06-2017 - HELD THAT - Section 95 (c) of the CGST Act 2017 defines Applicant as any person registered or desirous of obtaining registration under the said Act. In the instant case, it is observed that M/s. U.R. Rao Satellite Centre, who have filed the application, is not a supplier of either goods or services or both but is a recipient of services. Thus the instant application is not admissible and liable for rejection in terms of Section 98(2) of the CGST Act 2017.

Summary

Issues:
- Applicability of GST on insurance premium paid towards launch services
- Applicability of MoF Notification No.09/2017-Integrated Tax (Rate) dated 28-06-2017

Analysis:
1. The Applicant, a Government Department registered under the CGST Act and KGST/SGST Act, sought an advance ruling regarding the applicability of GST on insurance premium paid towards launch services and the MoF Notification.

2. The Applicant, a Central Government Organization for satellite development, is a TDS deductor. They filed the application under Section 97 of CGST Act and KGST Act, seeking clarification on specific GST-related queries.

3. The Applicant appeared for a personal hearing on 26-11-2021, where their representative reiterated the application's facts.

4. The Authority clarified that the CGST Act and KGST Act are in pari-materia, with similar provisions unless explicitly dissimilar. They considered the Applicant's submissions and arguments during the hearing.

5. The Authority examined the admissibility of the application, referencing Section 95(a) and (c) of the CGST Act, defining "advance ruling" and "Applicant" respectively.

6. It was noted that the Applicant, a recipient of services and not a supplier, sought the ruling, rendering the application inadmissible under Section 98(2) of the CGST Act 2017.

7. Consequently, the Authority rejected the application as "inadmissible" under Section 98(2) of the CGST Act 2017, as the Applicant, being a service recipient, did not meet the criteria for seeking an advance ruling on the supply of goods or services.