Application not maintainable as no locus standi substantiated by applicant

M/s. Gujarat Rural Industries Marketing Corporation Ltd. (GRIMCO) procures different types of toolkits and supplies to various D.I.C. offices for distribution to beneficiaries of different schemes of Govt. of Gujarat. GRIMCO floated an e-tender for purchasing tailoring kits consisting of 1 set of sewing machines, 1 set of overlock machines, and 1 PVC moulded stool. The supplier had to file the online financial bid.

After submitting that the GST rate on a sewing machine was 12% and on PVC moulded stool was 18%, GRIMCO sought an opinion on the GST rate on the kit. The authority referred to Section 103(1) CGST Act, which stipulates that Advance Ruling shall be binding only on the applicant who had sought it and on the concerned officer/ jurisdictional officer in respect of the applicant. Also, as per Section 95(a) CGST Act, the decision is provided by the advance ruling on the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. In the instant case as GRIMCO had not substantiated its locus standi to file said application as per section 95(a) CGST Act. It was held that GRIMCO’s supplier is not bound by the Ruling as per section 103(1) CGST Act. Therefore, the application was rejected as it was non-maintainable under Section 95(a) CGST Act.