2023 (9) TMI 123 - AAR - GST

Scope of Advance Ruling application - Condonation of delay in filing ITC 01 - availment of ITC of the closing stock lying on 27th July, 2022 - HELD THAT - Neither the applicant nor his authorised representative could manage to appear on any of the appointed dates - the applicant has been allowed sufficient opportunities of being heard. Based on the facts that the questions on which advance ruling is sought by the applicant are not covered under any of the clauses under sub-section (2) of section 97 of the GST Act and the application has been filed without making payment of requisite fee referred to in sub-section (1) of section 97 of the GST Act read with sub-rule (1) of rule 104 of the Central Goods and Services Tax Rules, 2017 and the West Bengal Goods and Services Tax Rules, 2017, there may not be any reason to accept the application made by the applicant for pronouncement of ruling. Application rejected.

Summary

Issues involved:
The issues involved in this judgment are related to the entitlement to take credit of input tax when a registered person ceases to pay tax under section 10, the delay in filing FORM GST ITC-01, and the payment of the required fee for obtaining an advance ruling.

Entitlement to take credit of input tax:
The applicant was registered under the composition scheme but ceased to pay tax under section 10 due to crossing the threshold limit. As per the provisions of the GST Act, a registered person ceasing to pay tax under section 10 is entitled to take credit of input tax in respect of various categories of inputs. The applicant claimed that they could not file FORM GST ITC-01 due to software issues and bulk items in stock. However, the Authority noted that the questions raised by the applicant were not covered under the clauses specified for seeking an advance ruling. Despite being given multiple opportunities to be heard, the applicant failed to appear, leading to the rejection of the application.

Delay in filing FORM GST ITC-01:
The applicant sought clarification on how to condone the delay in filing FORM GST ITC-01, whether the delay could be condoned, and how to avail the input tax credit of the closing stock. The applicant's submission highlighted difficulties in filing due to software and inventory issues. However, the Authority found that the questions raised did not fall under the categories specified for an advance ruling. Additionally, the application was not supported by the required fee, leading to the rejection of the application.

Payment of required fee for obtaining an advance ruling:
An applicant seeking an advance ruling is required to file an application accompanied by a fee of five thousand rupees. In this case, the application was found to lack the necessary fee payment. The Authority emphasized the importance of complying with the fee requirement for such applications. The absence of the fee payment, along with the questions raised not aligning with the specified categories for an advance ruling, led to the rejection of the application.