2021 (3) TMI 572 - AAR - GST

Maintainability of Advance Ruling application - scope of Advance Ruling - purchase of E-scrap under RCM - tax at 5% being trader - HELD THAT - Although the applicant has filed the application in the prescribed format of GST-ARA-01, they have not paid the fees of ₹ 10,000/- as required under the provisions of aforementioned Sections and Rules. Therefore, the instant application is liable for rejection under Section 98(2) of the CGST Act, 2017 for not paying the total fees of ₹ 10,000/- i.e. ₹ 5,000/- under each head CGST GGST as required under the provisions of CGST Act and Rules and respective GGST Act Rules. Since the applicant has failed to comply even with the statutory requirements of the provisions of the relevant sections and rules of the CGST Act, 2017/GGST Act, 2017 as well as the CGST Rules, 2017/GGST Rules, 2017 with regard to filing the application of Advance Ruling before the Advance Ruling Authority, thus rendering it an invalid application for Advance Ruling under Section 97(1) of the CGST Act, 2017 read with Rule 104 of the CGST Rules, 2017. Instant application filed by M/s. Abdulwahid Shamsudin Malik (Legal Name), IQRA Traders (Trade Name), Ahmedabad is hereby rejected under Section 98(2) of the CGST/GGST Act, 2017 being non-maintainable.

Summary

Issues:
1. Application for Advance Ruling under Section 97 of CGST Act, 2017.
2. Whether the applicant can purchase E-Scrap under RCM and pay tax at 5% as a Trader.

Analysis:
1. The applicant, a trader dealing in various types of scrap including E-Scrap, sought an Advance Ruling to clarify if they could purchase E-Scrap under Reverse Charge Mechanism (RCM) and pay tax at 5%. The application was filed in the prescribed format required by Section 97(1) of the CGST Act, 2017.
2. Despite the proper format submission, it was noted that the fee paid with the application was only ?5,000, whereas the required fee is ?10,000 as per the provisions of Section 97 and Rule 104 of the CGST Act, 2017. The authorities highlighted that the application must be accompanied by the correct fee to be considered valid.
3. The ruling emphasized the importance of complying with statutory requirements, stating that the failure to pay the total fee of ?10,000 (?5,000 for both CGST and GGST) renders the application invalid. As a result, the application by the trader was deemed non-maintainable under Section 98(2) of the CGST/GGST Act, 2017.
4. Due to the non-compliance with fee payment regulations, the Advance Ruling Authority rejected the application by the trader, M/s. Abdulwahid Shamsudin Malik (Legal Name), IQRA Traders (Trade Name), Ahmedabad. The judgment was based on the applicant's failure to meet the statutory fee requirements, leading to the application being considered invalid and non-maintainable.