Advance Ruling can be given on supply being undertaken or proposed to be undertaken

M/s. Royal Techno Projects (India) Pvt. Ltd was carrying out a road contract or carrying out a sub-contract and the tender charges are inclusive of tax. The authority was asked whether tax is to be calculated on the tender price or inclusive of the tender price.

The authority held that M/s Royal’s application is cryptic. The authority found that the said work was to be completed within 9 months from the date of the written order to commence which was 01/12/20, thereby time limit of 9 months was completed on 01/09/21, and thereby the time limit of 9 months is completed. The authority noted that the said activity, as submitted by M/s Royal is neither an ongoing nor a proposed activity as of the date of filing the subject application. As per Section 95(a) CGST Act, Advance Ruling is a decision provided to an applicant in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. Therefore, the question raised by M/s Royal does not fall under the gamut of Section 95(a) CGST Act. The subject application was thereby non-maintainable as per Section 95(a) CGST Act and was thereby rejected.