The Karnataka Authority For Advance Ruling ( AAR ) has held that Advance Ruling on completed supply of self-assessed tax is beyond jurisdiction of authority and rejected the same.
M/S. AGP City Gas Private Limited, the applicant is a Private Limited Company registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Act, 2017 (referred to as the CGST Act and KGST/SGST Act respectively) and is engaged in providing easy access to clean, low-cost and fuel efficient natural gas to people in India.
The applicant has sought advance ruling in respect of the following questions; that whether statutory levies collected by the Petroleum & Explosives Safety Organization ( PESO ), Ministry of Commerce & Industry, GOI under the Explosives Act, 1884 read with the Gas Cylinder Rules, 2016 and Static & Mobile Pressure Vessels (Unfired) Rules, 2016 for issuance of licence are liable to goods and services tax as per the Central Goods and Services Tax Act, 2017 and rules framed thereunder?
Further questioned that whether statutory levies collected by the Department of Factories, Boilers, Industrial Safety and Health, Government of Karnataka in respect of storage of LNG in the factory under the Factories Act, 1948 and Karnataka Factories Rules, 1969 for issuance of licence are liable to goods and services tax as per the Central Goods and Services Tax Act, 2017 and rules framed thereunder?
Anirudha R.J.Nayak, Advocate and Duly Authorised Representative appeared for personal hearing proceedings held on 13.04.2023 and reiterated the facts narrated in their application.
The Applicant is engaged in providing easy access to clean, low-cost and fuel-efficient natural gas to people in India. They own and operate LNG/natural gas infrastructure at multiple regions across the country and in order to successfully provide al gas across the country, they have obtained required licenses, approvals and no certificates from concerned authorities after payment of all the statutory levies.
It was stated that they have made payment of Rs. 2,49,660 towards GST under reverse charge mechanism on 18.11.2022 in respect of all the statutory levies charged by the Central Government/ State Government/ Muncipality/ Panchayat for providing licenses, approvals and no-objection certificates to the Applicant.
It was found that the Application was filed on 03.04.2023 to know about the applicability of GST on the statutory levies on which the Applicant has already discharged GST under RCM. Thus the maintainability of the Application needs to be examined.
The AAR Comprising Dr. M.P. Ravi Prasad and Kiran Reddy T observed that Section 95(a) of the CGST Act 2017, while defining the term ‘advance ruling’, stipulates 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.
It was found that the questions, on which the applicant seeks advance ruling, are not in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the said applicant, but in relation to a completed supply on which self-assessed tax is discharged by the applicant.
The AAR held that the application is beyond the jurisdiction and rejected, the same in terms of Section 98(2) of the CGST Act 2017.
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