2023 (4) TMI 301 - AAR - GST

Scope of Advance Ruling application - application of GST exemption notification No. 12/2017 dated 28.6.2017 - section 98(2) of the CGST Act, 2017 read with sections 95(a), (c) and 103 of the CGST Act, 2017 - HELD THAT - A conjoint reading of the sections 95(a) and (c), 97 and 103 of the CGST Act, 2017, depicts that advance ruling means a decision by the AAR to an applicant on matters or on questions specified under 97(2) ibid in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant; that an applicant, means any person registered or desirous of obtaining registration under this Act; that such an applicant, may make an application in the prescribed form with appropriate fee, stating the question on which the said ruling is sought. This application, is not filed by M/s. Khanepe Hungermall LLP, but by the Chartered Accountant in his own name. Since the person who has applied M/s. Kalepsh Dineshbhai Patel is not the person who proposes to undertake the supply, question of giving an advance ruling in the matter simply does not arise. Secondly, the ruling, even if given to the person who has filed the application, will not be binding on M/s. Khanepe in terms of section 103, ibid. Thirdly, it is also found that the application is not accompanied by the requisite fee in terms of section 97(1), ibid read with Rule 104 of the CGST Rules, 2017. On being pointed out during the course of personal hearing, the applicant had admitted that he has in fact filed the application in his name seeking advance ruling and that he is not the actual service provider. It was further admitted that the application was not accompanied by the requisite fee.

Summary

Issues involved:
The application for advance ruling filed by a Chartered Accountant on behalf of a business entity not registered under GST raises questions regarding the application of GST exemption notification and the applicable GST rate.

Application of GST exemption notification No. 12/2017 dated 28.6.2017:
The applicant, a business providing hostel facilities and food services to students, sought clarification on the application of GST exemption notification. The Authority considered the relevant provisions of the CGST Act and the GGST Act to determine the scope of advance ruling and the binding nature of such rulings.

Applicability of GST rate:
The applicant also inquired about the applicability of the GST rate to their services. The Authority analyzed the submission made by the applicant and the legal framework governing advance rulings under the GST laws to arrive at a decision.

Discussion and findings:
The Authority reviewed the submissions made by the applicant and conducted a personal hearing to understand the facts and interpretations of the law. It was noted that the application was filed by the Chartered Accountant on behalf of the business entity, which was not the actual service provider. Additionally, the application lacked the requisite fee as mandated by the CGST Rules.

Ruling:
The Authority rejected the application as it was filed by the Chartered Accountant and not the actual business entity providing the services. Moreover, the application was submitted without the necessary fee, rendering it non-compliant with the provisions of the CGST Act, 2017. The decision was based on sections 98(2), 95(a), (c), and 103 of the CGST Act, 2017, highlighting the importance of proper representation and compliance with fee requirements in advance ruling applications.