Advance Ruling cannot be given on Assumed Scenario in absence of relevant documents [Read Order]

The Karnataka Authority of Advance Ruling (AAR Karnataka) in the matter of M/s. VISTAR AEC CONSULTANTS LLP has held that Advance Ruling cannot be given on Assumed Scenario in the absence of relevant documents.

The applicant is a Limited Liability Partnership concern registered under the provisions of the Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/ SGST Act respectively). The applicant is providing architectural and structural design consultancy services.

The Question and Ruling are as follows:

i. Applicability of GST rate for revenue sharing scenarios between the joint bidders/partners on the project which partners have secured together, Where:

a. Partners have bid jointly and secured the project together
b. Partners have entered into an agreement with the client together
c. Partners have been given a work order by the client.

ii. Can we consider the GST at the rate as applicable to the client?

iii. Is the exemption of GST applicable to all partners as mentioned by TCC?

RULING

i. Advance rulings cannot be given on assumed scenarios in the absence of relevant documents.

ii. The Applicant cannot consider the GST at the rate as applicable to the client.

iii. The exemption of GST is not applicable to the Applicant.

For Official Ruling Download PDF Given Below: