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Recipient is not eligible for advance ruling: AAR

A Person registered or desirous of obtaining registration under GST can seek advance ruling only in relation to the supply of goods or services or both being undertaken or proposed to be undertaken. In this case, we observe that applicant is not a supplier of either goods or services or both but is a recipient of services: Says AAR

Applicant

The applicant is availing services from KEONICS by way of supply of IT professionals for information Technology System Development and Maintenances for Municipal Corporation activities and also availing security services from M/s Gemini Security and Allied Services by way of Supply of Security Guards.

In view of the above, the applicant has sought advance ruling in respect of the following question:

“Whether Supply of Man Power services provided by M/s KEONICS and M/s GEMINI SECURITY AND ALLIED SERVICES to applicant which are in the nature of Pure services as per the Notification No.12/ 2017 of CGST (rate) read with Notification No.02/ 2018 CGST (rate) are exempted from GST.”

AAR

We proceed to examine the admissibility / maintainability of the instant application before going into the merits of the application. We invite reference to Section 95 (a) of the CGST Act 2017, which defines “advance ruling” to mean

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 or sub-section (1) of section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant;

Further Section 95 (c) of the CGST Act 2017 defines “Applicant” as any person registered or desirous of obtaining registration under the said Act.

It could be easily inferred from above that any person registered or desirous of obtaining registration under CGST Act 2017 can seek advance ruling only in relation to the supply of goods or services or both being undertaken or proposed to be undertaken.

In the instant case, we observe that applicant, who have filed the instant application is not a supplier of either goods or services or both but is a recipient of services. Thus the instant application is not admissible and liable for rejection in terms of Section 98(2) of the CGST Act 2017.


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Author:

TaxReply


May 29, 2021

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Usefull information
By: Mahantesh
May 31, 2021


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