TMI Blog2022 (6) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of the applicant. If an application is filed by the recipient of goods or services or both on the taxability of his inward supply of goods or services and ruling is pronounced accordingly, such ruling shall be binding only on him and on the concerned officer or the jurisdictional officer of him. In no way, the ruling shall be binding on the supplier of such goods or services. Any provisions of the Law, therefore, should not be interpreted in a way which defeats the very purpose of the objective and purpose of the legal provision. Thus, in the subject application, the applicant cannot seek an advance ruling in relation to the supply where it is a recipient of services. Since provisions of Sec 95 (a) are very clear and unambig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression `GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT 2.1 M/s. Gurunanak Romell LLP (Applicant) having GSTIN 27AAHFR5520P1Z4 is undertaking certain Residential Real Estate Projects (PREP) primarily having residential apartments with a carpet area upto 60 sq. mts. Applicant wants to know whether Entry No. 3 (v) (da) of Notification 11/2017-CT (Rate) dated 28/06/2017, as amended time to time, applies to the 'works contract service' received from its contractors. 2.2 As per the applicant, in the impugned project, more than 50% of Floor Space Index (FSI) is utili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CTS PVT. LTD. [2020 (42) G.S.T.L 536 (A.A.R. - GST - W.B.)] has provided Advance Ruling exactly on rate of tax applicable to works contractor. 2.5 Further, the Notification entry is qua the supply and not qua the person and therefore once a project qualifies as an Affordable Housing Project, the benefit of concessional rate of tax would be available in respect of 'work contract services' pertaining to low-cost houses, irrespective of it being supplied by the Developer or the Contractor. Also, the impugned question is with respect to applicability of rate on the specified supply of works contract services in respect of affordable housing project and thus, the question is qua the supply than qua the person. 03. CONTENTION - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in these transactions, the applicant is the recipient and not the supplier. In the first question it is asked whether particular provisions of notification apply in respect of services received from contractor. Here, the contractor is the service provider and applicant is the recipient of service. In second question the applicant wants to ask whether service contractor, who provides services in relation to construction of common amenities such as club house, swimming pool and amenities of like nature, whether on such supplies made by such contractor benefits of said provisions of said notification shall be available to such contractor. So, in both the questions nature of transactions is such that the applicant is the recipient and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the supplier may not follow the ruling and even find the supply as a taxable supply. In such a scenario, the ruling loses its relevance and applicability. Any provisions of the Law, therefore, should not be interpreted in a way which defeats the very purpose of the objective and purpose of the legal provision. We are therefore of the view that in the subject application, the applicant cannot seek an advance ruling in relation to the supply where it is a recipient of services. 5.5 The applicant has mainly emphasized on the following two issues, viz. (1) The word 'in relation to the supply of goods or services or both' in Section 95(a) of CGST Act, 2017, can be interpreted to include supply of both inward supply and outward ..... X X X X Extracts X X X X X X X X Extracts X X X X
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