Taxpoint: GST Advance ruling rejected when not in relation of supply undertaken by Assessee

GST Advance ruling rejected when not in relation of supply undertaken by Assessee

1. M/s Barbeque Nation Hospitality Ltd., (called as the ‘Applicant’ hereinafter), Prestige Zeenath, 3rd Floor,# 8/1, Residency Road, Richmond Town, Bengaluru – 560025, Kamataka, having GSTI.N number 29AAKCS3053N1ZS, have filed -an application ‘for Advance Ruling under Section 97 of CGST Act,2017 & KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017; in form GST ARA-01. discharging the fee of Rs. 5,000 / each under the CGST Act and the, KGST Act.

2. The applicant, engaged in hospitality industry, took the premises, on lease, measuring 5773 sq. ft. of super built up area on the first floor of the commercial buildihg known as “Prestige Plaza” situated at Yelabanka, Bengaluru, under the lease deed dated 08.03.2019., to run the restaurant and food catering services. The applicant is required te pay ‘rent’, ‘car parking charges’, ‘security deposit’, ‘DG consumption charges’ and ‘maintenance charges’; and the applicable GST thereon.

3. The applicant also is required to reimburse the ‘Electricity Charges, for electricify consumed, at actuals, in terms of clause 13.1 of the lease deed. The lessors raise monthly invoice for electricity charges, energy tax and demand charges, referring together as “Electricity Charges”, charging, GST @ 18%. The applicant raises the objection for charging GST on the said Electricity charges and questions the lessers about the legal authority/ source of law. In view of the above the applicant filed the instant application for advance ruling.

4. Section 95(a) of the CGST Act 2017, while defining the term -‘advance ruling’, stipulated that an applicant can seek advance ruling on the questions specified under Section 97(2) of the CGST Act 2017, in relation to the supply of goods or services or both ‘being undertaken or proposed to be undertaken by the said applicant. In the instant case the questions, on which the applicant being seeks advance or ruling are not in relation to the supply of-goods services or both undertaken proposed to be undertaken by the said applicant, but in relation to the Service/s being received by them.

Therefore the instant application is beyond the jurisdiction of this authority and hence is liable for rejection.

5. In view of the above we pass the following

RULING

The application filed by the, Applicant for advance ruling is regected., in term of Section 98(2) of the CGST Act 2017.

Click here to Download the Order

Tags : Judgement, GST, Advance Ruling

The post GST Advance ruling rejected when not in relation of supply undertaken by Assessee appeared first on Studycafe.

from Studycafe https://ift.tt/2vEksjC