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TMI BlogRECENT ADVANCE RULINGS IN GST (PART-7)X X X X Extracts X X X X X X X X Extracts X X X X ..... RECENT ADVANCE RULINGS IN GST (PART-7) - By: - Dr. Sanjiv Agarwal - Goods and Services Tax - GST - Dated:- 13-10-2018 - - Advance rulings are important in any tax law as it provides a forum for clarification and possible interpretation of statutory provisions. Moreover, it conveys the legislative intention from the revenue s view point. Provisions of advance ruling are contained in section 95 to 106 of CGST Act, 2017 and State / UT GST enactment. Rules 103 to 107 of also provide for forms, manner, certification etc. The Authority for Advance Rulings (AAR) have been set up in all the states and we have now over 200 advance rulings on different issues already pronounced by various State Authorities. The appellate mechanism for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filing appeals against AAR rulings is also in place and we have about two dozen of such appellate orders already pronounced. One major issue presently being faced is about multiple authorities (equal to number of States), each pronouncing a ruling of its own even if the matter is covered by some other State AAR s rulings. There would be situations where we may have different rulings on same question(s). GST Council ought to decide on having a Centralized Authority as was there in erstwhile tax regime. The orders of Appellate Advance Ruling Authority have also started pouring in. The summary of few more recent advance rulings pronounced by State Advance Ruling Authorities are discussed hereunder but these needs to be read in the backgrou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd of the question involved: Advance Ruling on jurisdiction of AAR Where the applicant filed an application before the Authority for Advance Ruling seeking an advance ruling in respect of the following question: Whether rate of tax on pure services (excluding works contract service or other composite supplies involving supply of any goods) received by it from service providers is NIL as per Entry No. 3 of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017. It was observed that the applicant is recipient of service and not service provider and also the services are not under reverse charge mechanism. The Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 is applicable to provider of service and not rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipient of service. It was observed that the instant applicant being recipient of service and not service provider is not the proper person to make the instant advance ruling application. In view of above facts, the applicant's application was held to be liable for rejection as per proviso to section 98(2) and, therefore, could not be entertained by the Authority and is accordingly, rejected as not maintainable. [ IN RE: M/S. VISVESVRAYA NATIONAL INSTITUTE OF TECHNOLOGY, NAGPUR - 2018 (8) TMI 976 - AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA ]. Advance Ruling on jurisdiction of AAR Where the applicant was an importer of coal and was also a dealer in trading of coal. The applicant sought advance ruling on as to whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther Input Tax Credit (ITC) is available on clean environment (energy) Cess paid at the time of import of Coal? The Authority for Advance ruling ruled that on availability of Input Tax Credit (ITC) on clean environment (energy) cess paid at time of import of coal is beyond jurisdiction of AAR and hence declined to pronounce any ruling on the same. The application was not admitted. [ IN RE: M/S SINO RESOURCES (2018) 6 TMI 461 (AAR- Andhra Pradesh) ;]. Advance ruling on applicability of notifications and circulars not issued under CGST Act, 2017 Where the applicant had sought advance ruling on applicability of Notification dated 5.10.2017 issued by DIPP, Ministry of Commerce and Industry read with CBEC Circular N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 1060/9/2017-Cx. Dated 27th November 2017 in following situations: If the assessee takes over an eligible unit as a going concern under slump sale agreement and there is a change in the ownership of the unit which was availing the benefit of area based exemption Notification No. 50/2003-CE dated 10.6.2003, as amended', prior to 1.7.2017. If the said eligible unit availing of the exemption is physically shifted to a new location within the area specified in the said area based exemption notifications. If there is any addition or modification in the plant or machinery or on the production of new products after taking over an eligible unit during residual period of exemption. AAR ruled that application seeking advance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruling on notifications and circulars not issued under CGST Act do not fall under section 97(2) (a to g) of CGST Act, 2017 and under purview of Authority of Advance Ruling constituted under the CGST/SGST Acts. [ M/S KANJ PRODUCTS PRIVATE LIMITED - 2018 (6) TMI 429 - AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND ]. Advance ruling for procedure on receipt of application Where the applicant was engaged in the manufacture of textile yarn and it approached AAR to specify the complete procedure for supplies by DTA to Advance Authorization Holder and specify the applicability of Foreign Trade Policy 2015 2020 mid-term review and specify procedure for procuring goods from DTA against Advance Authorization. It was o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bserved that the questions posed before the Authority in the instant case, did not classify under any of the categories (a) to (g) brought out under section 97(2). As regards first issue, needless to say that procedure laid down under Notification No. 48/2017-CT dated 18.10.2017 is loud and clear and has to be followed in letter and spirit. Further, the Authority felt that it is neither obliged nor mandated by the CGST Act , to clarify or specify any procedure brought into effect by a Notification. As per section 97(2) (b) , ruling can be sought on 'Applicability of a notification under the provisions of this Act', but the applicant have not questioned applicability of a notification. On the contrary, the applicant admittedly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreed to the applicability of the notification. In the given circumstances, there was no reason to entertain issue posed in the instant Application. The second issue was held to be beyond the ambit of section 97(2) , as it related to applicability of Foreign Trade Policy 2015-2020 mid-term review and the related procedure. The applicant had sought a ruling for applicability of Foreign Trade Policy which was clearly beyond the ambit of Authority for Advance Ruling. Thus, the application was held to be not worthy of admission. Thus, the application filed by the applicants, being beyond the scope of section 97(2), merit rejection at the stage of admission itself and was rejected. [ IN RE : SPENTEX INDUSTRIES LTD. (2018) 8 T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MI 285 (AAR- Madhya Pradesh); ] Where the applicant had filed an application in Form GST ARA-01, dated 26.01.2018, for seeking advance ruling on 'clarification of rate of tax', for grain based Extra Neutral Alcohol (ENA) as they are engaged in manufacturing of grain based extra neutral alcohol. The question on which the advance ruling was sought on what tax rate applicable to grain based extra neutral alcohol and whether this comes under 18% or exempted or any other taxes category? In the instant case, on verification of record submitted by jurisdictional authority, it was found that proceedings were initiated well before filing of application before AAR and applicant himself admitted that they had preferred wr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it petition before High Court on same issue which was pending for disposal, the AAR ruled that the application did not qualify pre requisitions for admission as per section 98(2) of CGST Act, 2017 . [ IN RE: M/S CRUX BIO TECH INDIA PRIVATE LIMITED (2018) 6 TMI 462 (AAR- Andhra Pradesh );]. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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