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April 29, 2021

Advance ruling application is to be rejected in case the application is not accompanied by a requisite fee of Rs. 10,000

by Mahesh Mara in GST

Advance ruling application is to be rejected in case the application is not accompanied by a requisite fee of Rs. 10,000

What is section 97(1) of the CGST act?

“Advance ruling” means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97(1) of the CGST Act, 2017, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. Matters or questions specified in section 97(2) of the CGST Act acre as follows:

1. Classification of any goods or services or both;

2. Applicability of a notification issued under the provisions of CGST Act;

3. Determination of time and value of supply of goods or services or both;

4. Admissibility of input tax credit of tax paid or deemed to have been paid;

5. Determination of the liability to pay tax on any goods or services or both;

6. Whether applicant is required to be registered;

7. Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.

In a single ruling the applicant may question on multiple matters stated above. For example, in a ruling the applicant may have a question on the applicability of a notification and determination of liability thereupon.

Fact and Issue of the case

The applicant is seeking Advance Ruling with regards to the applicability of CGST Act and HPGST Act. In the personal hearing proceedings scheduled, Sh S. K Sharma (Accounts Officer), representative for the applicant submitted that the applicant was unable to setoff the requisite fees for advance ruling against the application on GST common portal.

Observation of the Authority:

AAR observed that Section 97(1) of CGST Act, 2017 provides that an applicant desirous of obtaining an advance ruling may make an application in such form and manner and accompanied by such fee as may be prescribed, stating the question on which the advance ruling is sought. A similar provision is provided under section 97(1) of the HPGST Act, 2017. The prescribed fee as per provisions of Rule 104 of CGST Rules, 2017 is INR 5000/- under CGST head. Rule 104 of HPGST Rules, 2017 also provides for a fee of INR 5000/- under SGST head.

Since the Advance Ruling has been sought with regards to the applicability of provisions of CGST Act and HPGST Act, therefore the prescribed fee would be INR 5000/- each under CGST & SGST heads.

Further, section 98(2) empowers the Authority to either admit or reject the application by order, after examining the application and the records called for, after hearing the applicant or his authorised representative and the concerned officer or his authorised representative. Provided further that no application shall be rejected under this sub-section unless an opportunity of hearing has been given to the applicant.

Conclusion

The Authority Concluded that since the application, in this case, is not accompanied by the requisite fee of INR 10,000/- (i.e INR 5,000/- each under CGST and SGST), therefore the same is rejected. This ruling however does not in any way affect the right of the applicant to file a fresh application for seeking a ruling on the same points provided it satisfies the provisions of section 97(1).

Read the full order of the Advance Authority Ruling from below

Application-is-to-be-rejected-in-case-the-application-is-not-accompanied-by-a-requisite-fee-of-Rs.-10000

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