Receiver of Goods or Services Cannot File GST Advance Ruling Application: AAR Clarifies

The applicant, M/s Convenieo Sales Private Limited, was allotted an institutional plot under the Institutional Plot Scheme by the Yamuna Expressway Industrial Development Authority (YEIDA). The applicant wanted to establish a Nursery School on the allotted plot. The applications for the scheme were available from 10.06.2023 to 01.07.202,3, and the allotment was carried out using the e-auction method. The applicant secured a plot with an area of 1000 sq. meters.

The applicant was required to deposit 10% of the total premium under Earnest Money Deposit (EMD), and 30% of the total bid amount on the successful bidding within 60 days of the allotment letter issuance. The rest amount was required to be paid in six instalments along with the interest. The applicant filed an application before the Uttar Pradesh AAR to seek an advance ruling on the following question:

“Whether the upfront amount payable by the applicant (as lease premium) for obtaining a long-term lease of ninety years in respect of the allotment of a plot for the development of educational infrastructure specifically for a Nursery School in the notified industrial town of YEIDA is exempt from the payment of GST under Entry No. 41 of Notification No. 12/2017-CT (Rate) dated 28.06.2017, as amended by Notification No. 32/2017-CT (Rate) dated 13.10.2017, and corresponding Uttar Pradesh State notifications No. ΚΑ.ΝΙ.-2-843/ΧΙ-9(47)/17-U.P. Act-1-2017-Order-(10)-2017 dated 30.06.2017, as amended by Notification No. ΚΑ.ΝΙ.2-1710/X1-(47)/17-U.P. Act-1-2017-Order-(79)-2017 dated 14.11.2017?”

The Uttar Pradesh Authority for Advance Ruling (AAR) observed the definition of GST Advance Ruling under section 95 of the CGST Act and observed that the application seeking advance ruling can only be filed by the supplier of goods/services. However, in the present case, the authority found that the applicant M/s Convenieo is the receiver of the service/goods from the Yamuna Expressway Industrial Development Authority (YEIDA). Therefore, the AAR cannot deliver a ruling in such a case.