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TMI Blog2023 (7) TMI 1221X X X X Extracts X X X X X X X X Extracts X X X X ..... t filed their application before the Rajasthan Authority for Advance Ruling (RAAR) on 15.10.2022 i.e. much later from the discharging his GST liability It is also found that Section 17(5) (g) 17 (5) (h) on question no one, Section 15 (1) Section 15(5) on question no 2, and Section 18 (6) on question no 3 are very much clear and there is no ambiguity in these section. We observe that the applicant is well aware about the sections and discharging his tax liability in accordance to them. The scope of the ruling for Authority for Advance Ruling (AAR) is limited to the transactions being undertaken or proposed to be undertaken on the matters which are not sorted out. In the instant case, the application seeking advance ruling was filed on 15.10.2022 before the RAAR with respect to supplies already being undertaken, GST being paid and GST returns has been submitted. Hence, the case is out of the purview of the Advance Ruling. - RAJ/AAR/2023-24/04 - - - Dated:- 4-4-2023 - UMESH KUMAR GARG AND MAHESH KUMAR GOWLA, MEMBER Present for the Applicant : Adv. Shri Ravi Gupta Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectors to charge the consideration as per their choice, to provide personal bank guarantee for sanctioning loan/credit limits to the company. Rule 28 of the CGST Rules, 2017 specifies that the value of the supply of goods or services or both between distinct persons as specified in sub-section (4) and (5) of section 25 or where the supplier and recipient are related, other than where the supply is made through an agent, shall- (a) be the open market value of such supply; (b) if the open market value is not available, be the value of supply of goods or services of like kind and quality; (c) if the value is not determinable under clause (a) or (b), be the value as determined by the application of rule 30 or rule 31, in that order: Provided that where the goods are intended for further supply as such by the recipient, the value shall, at the option of the supplier, be an amount equivalent to ninety percent of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being a related person: Provided further that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on value of such goods determined under section 15? D. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 06-04.2023. Adv. Shri Ravi Gupta, Authorized Representatives appeared for personal hearing. He reiterated the submission already made in written submission. He also stated for additional written submission. He also stated that he will submit the details of registration, ITC being availed and details of procedure being followed at present by applicant on all three questions since registration. Adv. Shri Ravi Gupta, submitted additional submission vide letter dated 13.04.2023 which are as under- 1) As enquired during the personal hearing by your good self we state that effective date of registration of the applicant under GST was 01/07/2017 and return filing status is as per the screenshot attached herewith and marked as ANX-1. 2) Whereas, we want to draw attention of your good self on the relevant provisions of the statue as re-produced hereunder: A) Definition of advance ruling given under clause (a) of section 95 of the CGST Act, 2017: 95. Definitions of Advance Ruling- In this Chapter, unless the context otherwise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject matter of the advance ruling as the law nowhere debars that once the activity is undertaken that can never be subject matter of the advance ruling unless the question raised in the application is already pending or decided in any proceedings in the case of the applicant. 5) That the decision passed in the matter of M/s Shri Vinayak Buildcon - 2022-VIL47-AAAR - Rajasthan and in the matter of M/s Sutherland Mortgage Services INC - 2020-VIL-102-KER High Court of Kerala; also clarifies the scope of advance ruling in consonance to above submission. 6) That as per Constitution of India we are governed by the rule of law and in consonance to the said fundamental principle; the provisions of chapter XVII of the CGST Act, 2017 are framed; which prescribes the specific provision of passing any advance ruling based on the relevant provisions of the law but not on the basis of presumption and assumption. The third limb of the principles of natural justice also prescribes that a judgment/ruling should be speaking in nature and based on the provisions of the law. 7) That with regard to the first question raised in the advance ruling application related to the eligibi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per Section 97 (2)(c) (e) of the CGST Act, 2017. Ans - As per section 9(3) 9(4) of the Central Goods @ Services Tax Act, 2017/ Rajasthan Goods Services Tax Act, 2017(CGST/RGST Act) read with S. No. 6 of Notification No. 13/2017-Central Tax (Rate) dated 28.06.2017 prescribed that services supplied by director of a company or a body corporate to the said company or the body corporate located in the taxable territory than the recipient of service shall pay GST on Reverse Charge Mechanism (RCM), As per the provisions of Section 7(1)(c) read with Para-2 of Schedule-1 of the Central Goods Services Tax Act, 2017/ Rajasthan Goods Services Tax Act, 2017, supply of services between related persons or between distinct persons as specified in Section 25 shall be treated as supply even if made without consideration hence, the transactions of providing guarantee by the directors to the banks for the Taxpayer's loans is a taxable transaction, For the valuation of transaction of providing guarantee to the banks to the banks for the Taxpayer by the directors, the rates available of various banks in market who also gives bank guarantees to other may be referred under rule 28(b) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmined under section 15? This question is permissible as per Section 97 (2)(e) of the CGST Act, 2017. Ans . Yes, Applicant is eligible to pay the Lax on transaction value determined under section 15 of CGST /RGST Act 2017 of rolling mill metal rolls used in production process of TMT bars. F. FINDINGS, ANALYSIS CONCLUSION: At the outset we would like to make it clear that the provisions of CGST Act and RGST Act are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the RGST Act. 1) We have carefully examined the statement of facts, supporting documents filed by the Applicant along with application, oral and written submissions made at the time of hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. We would like to discuss the submission made by applicant and will take up the above question for discussion one by one. 2) As per written submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application for seeking advance ruling on 15.10.2022 and activities of supply, payment of GST and submission of GST returns taken places since long back and to interfere the matter which already taken place is out of preview of Advance Ruling and can only be decided by competent authority under which jurisdiction of GST paid and GST returns has been submitted. 4) we have gone through the additional submission made by applicant on 13.04.2023 and held that applicant has not disclosed the practice already being followed by him in previous period, however at this time of juncture, we held that when there is no misunderstanding of law or no dispute of tax rate, applicant only seek clarification on the practice opted by him in past in relation to matters on which advance ruling is sought. 4.1) we found that the question put before the authority are in vague in nature for example applicant has not specifically mentioned what kind of marketing is done through distribution of goods whereas he is involved in manufacturing of MS Ingot. We observe that T-shirt or other items which are distributed do not constitute a part of furtherance of business or used in course of business. Furtherm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details of transaction of an specific supply. Further, As per Section 97 (2) The question on which the advance ruling is sought under this Act, shall be in respect of, (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. (ii) From the above-mentioned provision, it is seen that this authority is constituted to decide on matters or questions specified in sub-section (2) of Section 97, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. (iii) We observe that purpose of Advance ruling is to provide certainty of tax liability in advance i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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