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2021 (3) TMI 574 - AAR - GSTMaintainability of Advance Ruling application - application not filed in proper format - Service of construction and development of state highway roads provided by GSRDC - activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively of the Constitution of India - Government Entity or Governmental Authority - HELD THAT - On a combined reading of the provisions of Section 97 and Rule 104 of both the aforementioned Acts and Rules, we find that the application for obtaining an Advance Ruling under sub-section(1) of Section 97 is to be submitted in FORM-GST ARA-01 and shall be accompanied by a fee of Ten thousand rupees (Five thousand rupees as per Rule 104 of the CGST Rules, 2017 Five thousand rupees as per Rule 104 of the GGST Rules, 2017). Although the applicant has paid the required fees of ₹ 10,000/- as required, they have not filed the application in the prescribed format of GST-ARA-01 required as per 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 filing the application in proper FORM GST-ARA-1 as required under the provisions of CGST Act and Rules and respective GGST Act Rules. Instant application filed by M/s. Gujarat State Road Development Corporation ltd., Ground floor, Nirman Bhavan, Sector-10A, Gandhinagar-382010 is hereby rejected under Section 98(2) of the CGST/GGST Act, 2017 being non-maintainable.
Issues Involved:
1. Whether the service of construction and development of state highway roads provided by GSRDC qualifies as an activity in relation to a function entrusted to Panchayat or Municipality under Article 243G or Article 243W of the Constitution of India. 2. Whether the applicant falls under the definition of Governmental Authority or Government Entity. Issue-wise Detailed Analysis: 1. Qualification of Services under Article 243G or 243W: The applicant, Gujarat State Road Development Corporation Ltd. (GSRDC), is engaged in the construction and development of state highway roads. The applicant sought clarification on whether these services qualify as activities related to functions entrusted to Panchayats or Municipalities under Article 243G or Article 243W of the Constitution. The applicant argued that their services do not fall under the activities listed in the 12th Schedule of Article 243W or the 11th Schedule of Article 243G. Thus, they concluded that their services do not qualify for the exemption provided to Governmental Authorities under Entry No.3 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. 2. Definition of Governmental Authority or Government Entity: The applicant further submitted that GSRDC is a wholly-owned entity of the Government of Gujarat, established under the Companies Act, 1956, with the main objective of constructing and developing state highway roads. They argued that GSRDC qualifies as a "Government Entity" as per Notification No.31/2017-Central Tax (Rate) dated 13.10.2017, which defines a Government Entity as an authority or body set up by an Act of Parliament or State Legislature or established by any Government, with 90% or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory, or a local authority. Discussion & Findings: Application Format and Fee: The Authority for Advance Ruling (AAR) noted that the application submitted by the applicant was not in the prescribed format as required under Section 97(1) of the CGST Act, 2017, read with Rule 104 of the CGST Rules, 2017. The applicant did pay the required fee of ?10,000, but the application was not submitted in FORM GST ARA-01, which is mandatory under the CGST Act and Rules. Rejection of Application: Due to the non-compliance with the statutory requirements regarding the application format, the AAR found the application invalid. Consequently, the application was rejected under Section 98(2) of the CGST Act, 2017, for not being filed in the proper form as stipulated by the relevant sections and rules of the CGST and GGST Acts and Rules. Ruling: The application filed by Gujarat State Road Development Corporation Ltd. was rejected as non-maintainable due to the failure to comply with the prescribed application format requirements.
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