Applicant is not eligible to obtain Advance Ruling unless GST under RCM is paid [AAR]


Applicant is not eligible to obtain Advance Ruling unless GST under RCM is paid [AAR]

GST ARA order in case of M/s. Telstra Telecommunication Pvt Ltd : Advance Ruling application of applicant was rejected by Maharashtra Advance Ruling Authority as he has not paid the taxes under reverse charge mechanism on the impugned transaction in GST ACT thereby violating conditions of section 95 of CGST Act.

Applicant is not eligible to obtain Advance Ruling unless GST under RCM is paid [AAR]

There Relevant extract of Order is given below:

1. Applicant wishes to seek advance ruling in terms of Section 97(2)(e) of Central Goods and Services Tax Act 2017, “Whether the supplier is to charge Integrated Tax on supply of leased circuit facility to the Applicant, where the leased circuit is installed in more than one State or Union territory and the contract or agreement doesn’t specifically provide the proportion of service provided in each state?”

2. Applicant also wishes to seek advance ruling in terms of Section 97(2)(d) of CGST Act 2017 “If the answer to the above question is affirmative, can the Applicant avail Input Tax Credit of the tax charged by the supplier of leased circuit facility?”

We find from the statement of facts pertaining to first question “Whether the supplier is to charge Integrated Tax on supply of leased circuit facility to the Applicant, where the leased circuit is installed in more than one State or Union territory and the contract or agreement doesn’t specifically provide the proportion of service provided in each state?”

From the perusal of transaction as discussed above in details in their contention, it is clear that applicant is not supplier of services .He is recipient of services from their supplier who leased circuit facility to the applicant and as such by virtue of section 95 is not an applicant who can obtain advance ruling unless the recipient is paying the taxes under reverse charge mechanism on the transaction of receipt of supply. In the present case applicant is recipient of services and he has not a paying the taxes under reverse charge mechanism on the impugned transaction in GST ACT. Hence, we find that the applicant has not satisfied the conditions of section 95 of CGST Act.

With respect to question No. 2 above, we clearly find that the question (1) is not on matters or questions specified in Section 97(2) of the Act and as such is inadmissible under section 97(2) of the Act.

For above discussion, in our view, present application seeking ruling on questions stated hereinabove is not maintainable and liable for rejection.

06. In view of the extensive deliberations as held hereinabove, we pass an order as follows

ORDER

(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)

For reasons as discussed in the body of the order, the subject application for advance ruling made by the applicant is rejected under the provisions of sub-section 2 of Section 98 of the CGST Act, 2017.


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