Home GST No Advance Ruling to be given on questions already determined by jurisdictional authority: AAR

No Advance Ruling to be given on questions already determined by jurisdictional authority: AAR

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No Advance Ruling to be given on questions already determined by jurisdictional authority: AAR

No Advance Ruling to be given on questions already determined by jurisdictional authority: AAR

The Applicant is a flour miller, engaged in offering providers of crushing wheat offered by the State Authorities, into fortified atta which in flip is equipped by the State Authorities via Public Distribution System. The possession of wheat or atta is rarely transferred to the Applicant.

The applicant has made this software below sub part (1) of part 97 of the GST Act and the principles made there below elevating following questions vide serial quantity 14 of the applying in FORM GST ARA-01: (i) What’s the worth of provide of providers offered by the applicant Firm to the State Authorities? (ii) What’s the fee of tax relevant on the worth of provide? What elements are to be included in calculation of the % of worth of products within the complete worth of composite provide for the aim of Notification No. 2/2018- Central Tax (Fee)?

Nevertheless, in course of non-public listening to, it has come to note of Advance Ruling Authority (AAR) that whereas disposing of a refund declare amounting to Rs.5,50,62,464/- of the applicant for the interval 01/07/2017 to 31/12/2020, the Assistant Commissioner, CGST & CX, Berhampore Division in his Talking Order No. 08/GST/Refund/AC/BER/2022-23 dated 09.01.2023 made the next observations:-

The taxpayer’s declare that they paid GST below tax bracket of 5% in absence of any priority stipulating the worth of provide of products within the stated composite provide isn’t tenable as Sl. No.3A of Notification No. 12/2017-Central tax (Fee) dated 28.06.2017 clearly exempts such composite provide of products & providers through which the worth of provide of products constitutes no more than 25 p.c of the worth of the stated composite provide offered to the Central Govt., State Govt. or Union Territory or Native Authority or a Govt. Authority or a Govt. Entity by the use of any exercise in relation to any operate entrusted to a Panchayat below article 243G of the Structure or in relation to any operate entrusted to a Municipality below article 243W of the Structure. The worth of products and providers within the composite provide made by them was to be calculated by them and if the provision was eligible for exemption they had been free to avail the exemption by way of Sl. No.3A of Notification No. 12/2017-Central tax (Fee) dated 28.06.2017. However they most popular to pay tax @5% below entry no. 26 of Notification No. 11/2017-Central tax (Fee) dated 28.06.2017. It implies that they had been conscious of their contribution of products and providers by way of share of worth of the composite provide and so their provide isn’t exempt from GST. The tax fee of 5% is relevant in case of job work service offered to a registered particular person. Additional, Round No. 153/09/2021-GST dated 17/06/2020 clarifes that if composite provide / job work service through which the worth of composite provide doesn’t exceed 25% of the worth of the composite provide is offered to any unregistered social gathering, GST @18% is relevant on the whole worth of provide.

The noticee remained silent whether or not the provision was made to a registered particular person or not. Additionally they didn’t submit any copy of contract entered into by the corporate with the State Govt for the interval of refund. They offered a duplicate of contract entered into by the corporate with the State Govt. that was made on third March, 2022. Due to this fact, whether or not the composite provide through the interval from 01.07.2017 to December, 2020 was made to the State Govt. or not couldn’t be ascertained. The Noticee claimed that the judgement made by the West Bengal Authority for Advance Ruling within the case of M/s. Berhampur Warehousing Personal Restricted [2022(9) TMI 367] and the judgement made by the Appellate Authority for Advance Ruling, West Bengal within the case of M/s. Maa Laxmi Enterprise [2022(9) TMI 202] are relevant to them because the case of the noticee is equivalent with the enterprise entity. They additional claimed that the State Govt vide Notification No. 2834FS/ Sectt/ Meals/ 4P-14/ 2013 dated 06.09.2017 revealed within the official Gazette of Kolkata, have specified fee of provide of products and providers and phrases of the contract which had been additionally identical for all of the flour mills. The declare of the noticee is predicated on the truth that the phrases and situation laid down in stated notification had been additionally fully equivalent for all of the millers. However within the absence of any contract between the noticee and the State Govt. through the interval into account it couldn’t be ascertained that they made the provision to the State Govt. Due to this fact, except and till it’s proved that the noticee made the stated provide to the State Govt. below identical phrases and situation and the small print of enterprise of these aforesaid enterprise entities are made recognized to the workplace, their submission of “equivalent issues” seems to not be acceptable.

It was discovered that the stated composite provide isn’t exempt from tax and because the provide was not made to the registered particular person, GST @18% is relevant on the stated provide. Due to this fact, the refund declare of Rs.5,50,62,464/- is discovered non-refundable to the taxpayer as per Part 54 of the CGST Act, 2017 learn with Rule 92(3) of the CGST Guidelines, 2017.

It thus appeared that the query raised by the applicant has already been determined by the jurisdictional authority in a previous continuing whereas deciding the refund declare as mentioned. Due to this fact, the current case is hit by the primary provision to Part 98(2) of the GST Act.

Therefore no ruling was handed within the on the spot case.

For Official Ruling Obtain PDF Given Under:

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