2018 (10) TMI 446 - AAR - GST

Liability to deduct TDS - Whether Deendayal Port Trust is liable to deduct TDS under section 51 of CGST Act, 2017 from the date of effective of the section 51? Held that - The issue raised by the applicant do not fall in the category of Section 97(2) of the Acts. Whether the applicant is liable to deduct TDS under section 51 of the CGST Act, 2017 and the GGST Act, 2017 is not covered by Section 97(2) of the Acts - This authority has been constituted in exercise of the powers conferred by section 96 of the Gujarat Goods and Services Tax Act, 2017, which Act extends to the whole of the state of Gujarat. This authority is a creature of statute and has to function within the legal boundary mandated by the Act. As the issue whether the applicant is liable to deduct TDS under Section 51 of the CGST Act, 2017 and the GGST Act, 2017 is not covered by Section 97(2) of the Acts, this authority is helpless to answer the question raised in the application, as it is lacking jurisdiction to decide the issue. The jurisdiction of this authority does not extend to the questions on determination of this issue. The application for Advance Ruling of M/s. Kandla Port Trust (Deendayal Port Trust) is rejected, under sub-section (2) of section 98 of the CGST Act, 2017 and the GGST Act, 2017.

Summary

Issues:
Whether the applicant is liable to deduct TDS under section 51 of the CGST Act, 2017 and the GGST Act, 2017.

Analysis:
The applicant, a port trust, sought an advance ruling on whether it is required to deduct TDS under section 51 of the CGST Act, 2017 and the GGST Act, 2017. The Advance Ruling Authority is empowered by Section 97(2) of the Acts to decide specific issues, including the liability to pay tax on goods or services. However, the issue of TDS deduction does not fall within the categories outlined in Section 97(2), limiting the authority's jurisdiction. The Authority, established under the Gujarat Goods and Services Tax Act, 2017, can only address matters specified in the Acts. Since the question of TDS deduction is beyond the scope of Section 97(2), the Authority lacks jurisdiction to rule on it. Consequently, the application was rejected at the admission stage due to the lack of jurisdiction, without delving into the case's merits.

In conclusion, the application for Advance Ruling by the port trust was dismissed under sub-section (2) of section 98 of the CGST Act, 2017 and the GGST Act, 2017. The ruling clarified the limitations of the Advance Ruling Authority's jurisdiction, emphasizing that it can only address issues explicitly designated in Section 97(2) of the Acts. The Authority's inability to rule on matters outside its prescribed scope led to the rejection of the applicant's query regarding TDS deduction under the relevant GST Acts.