2023 (6) TMI 1052 - AAR - GST

Maintainability of Advance Ruling application - Classification of services - rate of GST - transportation of Goods through rail - amount from M/s XYZ (Foreign Company) as reimbursement without raising Invoices - treatment of GST ITC - raising of separate invoice for only Service charges for arrangement of such services - HELD THAT - the applicant has not submitted any relevant documents, including Invoice, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment of vouchers, e-waybill and agreement copies etc. The issue on which advance ruling is sought, by the applicant appears to be hypothetical in nature, in the absence of relevant documents. Further, the applicant has not appeared for personal hearing and also declined another opportunity of personal hearing. The applicant neither submitted sufficient documents nor showed any Inclination to defend his case. Therefore we are not inclined to pronounce the ruling In the absence of proper documents - the ruling can be pronounced on the basis of proper documents in support of questions sought and not on the basis of assumption and hypothetical situation hence the application is not maintainable.

Summary

Issues involved:
The judgment addresses the following key Issues:
1. Rate of GST applicable on Invoices for transportation of goods through rail and treatment of GST ITC.
2. Whether the lower rate of GST at 5% is service-specific or service provider-specific for transportation by Indian Railways.
3. Possibility of claiming reimbursement without raising invoices if the lower rate is not applicable.
4. Authorization to raise a separate invoice solely for service charges for arranging transportation services.

Issue 1 - Rate of GST and Treatment of GST ITC:
The applicant, engaged in providing logistic services, sought clarification on the applicable GST rate for invoices raised on transportation services through rail to a foreign company. However, the Authority noted the absence of relevant documents such as invoices, bills of supply, and agreements. Due to this lack of documentation and the applicant's non-appearance during the personal hearing, the ruling was deemed not maintainable.

Issue 2 - Specificity of Lower GST Rate:
The applicant inquired whether the lower GST rate of 5% is specific to the service or the service provider, particularly in the context of transportation by Indian Railways. Despite the applicant's submission regarding transportation services to the foreign company, the ruling was not pronounced due to insufficient supporting documents and the absence of the applicant during the personal hearing.

Issue 3 - Reimbursement without Invoices:
The applicant questioned the possibility of claiming reimbursement from the foreign company without raising invoices if the lower GST rate is not applicable. However, the Authority highlighted the hypothetical nature of the issue raised, given the lack of relevant documents and the applicant's failure to participate in the personal hearing.

Issue 4 - Separate Invoice for Service Charges:
Regarding the authorization to raise a separate invoice exclusively for service charges related to arranging transportation services, the ruling was not pronounced due to the absence of proper documentation and the applicant's non-engagement during the personal hearing.

In conclusion, the judgment found the application to be not maintainable due to the lack of essential documents and the applicant's failure to provide adequate support for the issues raised. The ruling emphasized the necessity of proper documentation to support queries and decisions, rather than relying on assumptions or hypothetical scenarios.