2021 (2) TMI 1052 - AAR - GST

Rectification of mistake - error apparent on the face of record - Rate of tax - Benefit Composition Scheme available or not - Supply of services and goods - appellant engaged in the business of supplying goods under the trade name Empathic Trading Centre and is also a supplier of ser-vice of renting of immovable property - rate of composition tax applicable is 1% for the turnover of goods (sales) and 6% for the turnover of service (rent) - challenging the AAR decision alleging a mistake in the Advance Ruling order IN RE SRI. GHALIB IQBAL SHERIFF M/S. EMPHATIC TRADING CENTRE 2020 (4) TMI 874 - AUTHORITY FOR ADVANCE RULING, KARNATAKA where authority has ruled in the aforesaid order that the applicant is not eligible to opt to pay tax under Notification No.2/ 2019-Central Tax (Rate) dated 07.03.2019 as they are registered as a composition tax payer , where as they have not registered under the provisions of Section 10 of the Composition Scheme but opted for self payment of tax under Notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, which is a mistake apparent on records and requested for rectification of ruling at SI.No.2, in the AAR order. HELD THAT - It is observed that the applicant was a regular tax payer up to 31.03.2019, filed GSTR-3B returns regularly till 31.03.2019 on discharging applicable taxes. Thus the applicant was not a composition tax payer till 31.03.2019 - However, the applicant opted to avail the benefit of the Notification No.2/2019-Central Tax (Rate) dated 07.03.2019 , effective from 01.04.2019 and is discharging relevant taxes through self payment of tax basis PMT-08. The benefit of the notification can be availed effective from the beginning of the financial year or from the date of registration in cases where new registration has been obtained during the financial year. In the instant case the applicant has availed the notification supra effective from 01.04.2019. The required rectification the Ruling made - application allowed.

Summary

Issues: Rectification of mistake in Advance Ruling order regarding eligibility to opt for self-payment of tax under Notification No.2/2019-Central Tax (Rate) dated 07.03.2019.

Analysis:
1. The applicant, a trading center, filed for rectification of a mistake in the Advance Ruling order, claiming they were not eligible to opt for self-payment of tax under Notification No.2/2019-Central Tax (Rate) dated 07.03.2019, as ruled by the authority. They argued that although not registered under Section 10 of the Composition Scheme, they opted for self-payment of tax under the said notification, which was a mistake on record.

2. Upon examination of the GST returns, it was found that the applicant was a regular taxpayer until 31.03.2019, consistently filing GSTR-3B returns and discharging applicable taxes. Therefore, the applicant was not a composition tax payer until the mentioned date. However, from 01.04.2019, the applicant chose to avail the benefits of Notification No.2/2019-Central Tax (Rate) dated 07.03.2019, and started discharging relevant taxes through self-payment basis PMT-08. The notification could be availed from the start of the financial year or from the registration date in cases of new registrations during the year, which the applicant did from 01.04.2019.

3. After considering the submissions and examining the facts, the authority rectified the ruling, acknowledging that the applicant had indeed opted for self-payment of tax under Notification No.2/2019-Central Tax (Rate) dated 07.03.2019 from 01.04.2019 onwards. Therefore, the mistake in the initial ruling was rectified, ensuring the applicant's eligibility to avail the benefits of the said notification as per their chosen method of tax payment.