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2022 (3) TMI 1362 - AAR - GSTMaintainability of Advance Ruling application - Recipient of supply seeking ruling - Levy of GST - purchase of a plot for residential purpose - Levy of GST on sale/purchase of plots, when it is immovable property - HELD THAT - Section 95(c) defines applicant as any person registered or desirous of obtaining registration under this Act. And Section 95(a) enumerates that a Advance Ruling needs decision for providing in relation to supply of goods or services undertaken or proposed to be undertaken by the applicant - In the present case, the person applying for Advance Ruling does not qualify under Section 95(c) to be an applicant and also he is not making or proposing to make any supplies of goods or services. An Advance Ruling cannot be given by this authority. Hence the application is rejected.
Issues:
1. Applicability of GST on the purchase of a plot for residential purpose. 2. Provisions of GST Act and Rules applicable for taxation. 3. Exemption of GST on sale/purchase of plots as immovable property. 4. Authority to levy tax as per Article 265 of the Constitution of India. Analysis: Issue 1: Applicability of GST on the purchase of a plot for residential purpose The applicant sought clarification on whether GST is applicable on the purchase of a plot for residential purposes. The Advance Ruling Authority noted that the applicant, M/s. Poli Vasudeva Reddy, purchased land from a developer and raised this query. The Authority considered this query within the ambit of Section 97 of the GST Act and admitted the application based on the payment of the requisite fees and no objections from the jurisdictional officer. Issue 2: Provisions of GST Act and Rules applicable for taxation The applicant inquired about the specific provisions of the GST Act and Rules under which the taxation would be applicable if GST is levied on the purchase of a plot for residential purposes. The Authority clarified that unless specified, the provisions of both the CGST Act and the TGST Act are the same. The applicant had paid the necessary fees for the Advance Ruling, and the application was admitted for further consideration. Issue 3: Exemption of GST on sale/purchase of plots as immovable property The applicant raised a query regarding the exemption of GST on the sale/purchase of plots when considered as immovable property. However, the Authority, after personal hearing and discussion, found that the applicant did not qualify as an applicant under Section 95(c) of the GST Act, as the person was not making or proposing to make any supplies of goods or services. Therefore, the Authority concluded that an Advance Ruling could not be provided in this case, leading to the rejection of the application. Issue 4: Authority to levy tax as per Article 265 of the Constitution of India The applicant referred to Article 265 of the Constitution of India, which states that no tax shall be levied or collected except by authority of law. The Authority, in its findings, highlighted the definitions of applicant and the scope of Advance Ruling under Section 95 of the GST Act. As the applicant did not meet the criteria to qualify as an applicant and was not involved in supplies of goods or services, the Authority rejected the application for an Advance Ruling. In conclusion, the Advance Ruling Authority rejected the application of M/s. Poli Vasudeva Reddy as the applicant did not meet the necessary criteria to qualify for an Advance Ruling under the GST Act.
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