TMI Blog2023 (1) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus Section 95 allows this authority only to decide on matters or on questions in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant i.e. in the subject case this application can be entertained only if the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant - this authority is constituted to decide on matters or questions specified in sub-section (2) of Section 97, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. It is very much clear that the scope of the ruling for Authority for Advance Ruling (AAR) is limited to the transactions being undertaken or proposed to be undertaken on the matters which are not sorted out. In the instant case, as already narrated, the application seeking advance ruling was filed on 11.03.2022 before the RAAR with respect to supplies already being undertaken, GST being paid and Monthly returns already being submitted. - RAJ/AAR/2022-23/18 - - - Dated:- 11-11-2022 - UMESH KUMAR GARG AND M.S. KAVIA, MEMBER Present for the applicant : C.A. Bhaskar Thakkar, Authorized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 20/2017-Central Tax (Rate) dated 22.08.2017. d) CBIC vide Notification No. 15/2021-Central Tax (Rate) dated 18.11.2021 issued by Ministry of Finance (Department of Revenue), clarified that any supply made to Government Authority or Governmental Entity in relation to works contract services shall be liable to 18% instead of 12% w.e.f. 1st January 2022. e) With reference to the above notification, the company has submitted a letter to Public Health Engineering Department Rajasthan for clarification on the concessional rate of 12% applicable on works contract service rendered by SPML Infra Limited to PHED Rajasthan. In the response to the above letter, a circular was issued by PHED clarifying that the department will fall under the definition mentioned in the notification and concessional rate of 12% shall be applicable on works contracts. f) With reference to above facts the company have raised following queries before the Advance ruling: g) Whether works contract service rendered in relation to laying of pipelines for water projects supplied to PHED Rajasthan would attract a concessional rate of 12%GST? h) The above question arises in the light of rate amendment car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l authority would attract 12% GST. 5. In reference to the above notification, a circular has been issued by the PHED Rajasthan wherein it has clarified that the department falls under the definition of State Government. Therefore, GST shall be applicable at a concessional rate of 12% on the work contracts service rendered to them by SPML Infra Limited. 6. In the circular, PHED Rajasthan mentioned that they are covered under the exemption clause and shall fall under the concessional rate of 12%. C. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:- i) Whether works contract service rendered in relation to laying of pipelines for water projects supplied to PHED Rajasthan would attract a concessional rate of 12%GST? The above question arises in the light of rate amendment carried out vide Notification 15/2021 dated on 18.11.2021. D. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 29.08.2022.C.A. Shri Bhaskar Thakkar, (Authorised Representative) of applicant appeared for PH. During the PH, he reiterated the submissions already made in the written application. He requested for early disposal of the application. E. COMMENTS OF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the MED by suppliers may be applicable in case of the applicant. F. FINDINGS, ANALYSIS CONCLUSION: 1. We have perused the records on file and gone through the facts of the case and the submissions made by the applicant as well as the Jurisdictional Officers. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 2. Before examine whether the application made by applicant falls under the preview of Advance Ruling, we would like to discuss submissions made by applicant. Based on the written submission made by the applicant i.e. M/s SPML Infra Limited, we find that the applicant was awarded a work contract in relating to laying of pipelines for water projects. The contract price was inclusive of all taxes (service tax/VAT/CST etc). With the implementation of GST from 1st July 2017, the cost of all materials and service increased drastically due to applicability of GST on the works contract service in relation to water projects. The same projects were executing since introduction of GST i.e. w.e.f 01.7.2017 and paying GST/ submitting GST returns since 1.7.2017 on these supply. 3. We shall now examine the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to find out whether the mechanism opted by him for payment of GST on said service is right or wrong, which is against the spirit of Advance Ruling and can only be decided by the competent authority as per transactions taken place, GST paid and GST returns submitted by applicant time to time. 9. From the above details, it is very much clear that the scope of the ruling for Authority for Advance Ruling (AAR) is limited to the transactions being undertaken or proposed to be undertaken on the matters which are not sorted out. In the instant case, as already narrated, the application seeking advance ruling was filed on 11.03.2022 before the RAAR with respect to supplies already being undertaken, GST being paid and Monthly returns already being submitted. 10. Hence, the case is out of the purview of the Advance Ruling. In view of the foregoing, without going into the merits of the case, we rule as under: - RULING (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Rajasthan Goods and Services Tax Act, 2017) The subject application for advance ruling made by the applicant is not maintainable and hereby rejected under the provisions of the GST A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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