2024 (2) TMI 349 - AAR - GST

Maintainability of application for advance ruling - scope of Advance Ruling - Levy of GST - supply of services or not - statutory levies collected by the Petroleum Explosives Safety Organization (PESO), Ministry of Commerce Industry, GOI under the Explosives Act, 1884 read with the Gas Cylinder Rules, 2016 and Static Mobile Pressure Vessels (Unfired) Rules, 2016 for issuance of licence - statutory levies collected by the Department of Factories, Boilers, Industrial Safety and Health, Government of Karnataka in respect of storage of LNG in the factory under the Factories Act, 1948 and Karnataka Factories Rules, 1969 for issuance of licence - statutory levies collected by the Karnataka Fire Emergency Services Department, Government of Karnataka for issuance of a no objection certificate for a building plan approval - Registration fee or Stamp Duty collected by the Government of Karnataka in respect of registration of lease agreements for periods exceeding 11 months under Registration Act, 1908 - eligible for N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 Sl-47 and also Notification No. 9/ 2017-Integrated Tax (Rate) dated 28.6.2017 Sl-49 or not. HELD THAT - The Applicant states that they have made payment of Rs. 2,49,660 towards GST under reverse charge mechanism on 18.11.2022 in respect of all the statutory levies charged by the Central Government/State Government/ Municipality/ Panchayat for providing licenses, approvals and no-objection certificates to the Applicant. But this Application was filed on 03.04.2023 to know about the applicability of GST on the statutory levies on which the Applicant has already discharged GST under RCM. Thus the maintainability of the Application needs to be examined. Section 95(a) of the CGST Act 2017, while defining the term advance ruling , stipulates that an applicant can seek advance ruling on the questions specified under Section 97(2) of the CGST Act 2017, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the said applicant - It is pertinent to mention here that the word being is the present participle of the verb be and used to form tenses in the progressive (or continuous) aspect. A present participle is a verb form (or verbal) made by adding to the base that often functions as an adjective. Use of present participle denotes present and continuing action. Thus the phrase being undertaken refers to an ongoing and continuous supply. In the instant case, the questions, on which the applicant seeks advance ruling, are not in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the said applicant, but in relation to a completed supply on which self-assessed tax is discharged by the applicant. Therefore, the instant application is beyond the jurisdiction of this authority and hence is liable for rejection. The application filed by the Applicant for advance ruling is rejected, in terms of Section 98(2) of the CGST Act 2017.

Summary

Issues Involved:
The judgment involves determining the liability of statutory levies collected by various government departments for issuance of licenses under different Acts to goods and services tax as per the Central Goods and Services Tax Act, 2017 and rules framed thereunder.

Question 1:
The first question raised was whether statutory levies collected by the Petroleum & Explosives Safety Organization for issuance of licenses are liable to GST. The applicant sought clarification on the applicability of GST under the Central Goods and Services Tax Act, 2017.

Question 2:
The second query pertained to the exemption of statutory levies collected by the Petroleum & Explosives Safety Organization under specific notifications if they are not liable to GST.

Question 3:
The third issue revolved around the liability of statutory levies collected by the Department of Factories, Boilers, Industrial Safety and Health for issuance of licenses under the Factories Act, 1948, to GST.

Question 4:
The fourth question sought clarification on the exemption of statutory levies collected by the Department of Factories, Boilers, Industrial Safety and Health under specific notifications if they are not liable to GST.

Question 5:
The fifth query was regarding the liability of statutory levies collected by the Karnataka Fire & Emergency Services Department for issuance of a no objection certificate for building plan approval under the Central Goods and Services Tax Act, 2017.

Question 6:
The sixth issue was about the exemption of statutory levies collected by the Karnataka Fire & Emergency Services Department under specific notifications if they are not liable to GST.

Question 7:
The seventh question raised was whether Registration fee or Stamp Duty collected by the Government of Karnataka for registration of lease agreements are liable to GST.

Question 8:
The eighth query was about the exemption of Registration fee or Stamp Duty collected by the Government of Karnataka under specific notifications if they are not liable to GST.

Question 9:
The final issue was whether obtaining licenses, permissions, and no-objections qualifies as a supply of service under the GST Act.

Summary of Findings:
The Authority for Advance Ruling examined the maintainability of the application and found that the questions raised were not in relation to ongoing or proposed supplies but pertained to completed supplies on which tax had already been paid. Therefore, the application was deemed beyond the jurisdiction of the authority and was rejected under Section 98(2) of the CGST Act 2017.