2021 (2) TMI 339 - AAR - GST

Scope of Advance Ruling - Levy of GST - GST on combined value when the residential units are separately registered or not - whether the RWA can apply its own by-laws in apparent violation of the provisions in terms of the Circular No. 109/28/2019 GST dated 22/07/2019? - HELD THAT - In terms of section 95(a) of the Central Goods and Services Act 2017 or West Bengal Goods and Services Act 2017 an advance ruling means a decision provided by this Authority or the Appellate Authority as the case may be on matters or on questions specified in section 97(2) or section 100(1) of the GST Act in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. The question is related to the supply of maintenance service by the RWA. The applicant is not supplying the maintenance service at the residential units in Sanjeeva Town . This Authority cannot therefore provide a decision to the applicant in the form of an advance ruling - Application is therefore rejected in terms of section 98(2) of the GST Act.

Summary

Issues Involved:
Interpretation of by-laws by Residential Welfare Association for GST purposes.

Analysis:
The applicant purchased three residential units in a complex and seeks clarification on the Residential Welfare Association's (RWA) application of its by-laws for GST purposes. The RWA treats the three units as a single unit for charging GST on maintenance services, despite the units being separately registered and having distinct assessee numbers. The applicant questions the RWA's practice in light of Circular No. 109/28/2019-GST and seeks an advance ruling on the matter.

The Authority for Advance Ruling examines the applicant's query under section 95(a) of the GST Act, which defines an advance ruling as a decision provided by the Authority on matters specified in section 97(2) of the Act. The issue pertains to the supply of maintenance services by the RWA to the residential units owned by the applicant. However, since the applicant is not the one supplying the maintenance service, the Authority concludes that it cannot issue an advance ruling in this scenario.

Consequently, the application for an advance ruling is rejected under section 98(2) of the GST Act. The Authority directs that copies of the order be sent to the applicant for their information. The judgment clarifies the limitations of seeking advance rulings in situations where the applicant is not directly involved in the supply of goods or services under consideration.