The Telangana Authority of Advance Ruling (AAR) has ruled that the advance ruling authority could not give a ruling on the Goods and Service Tax (GST) liability arising in a different state.
The applicant Comsat Systems Private Limited was engaged in manufacture, supply, install, testing and commissioning of satellite communication antenna systems. The applicant submitted that the antennas manufactured at their factory (Hyderabad, Telangana) were required to be installed at various locations in different states of our Country.
They were required to install the antenna systems in various states of India, including Andaman, Nicobar Dweep Islands. That they had to install 19 Nos antenna systems at various locations/states in India and that Bharat Electronics Ltd, Bangalore Karnataka was insisting us to have separate temporary GST numbers for each location / states in the various states of India.
Thus they were being directed by the contractee to obtain registration in all the States where they were executing the contract which was contrary to their understanding of the provisions of the Act.
The applicant had sought advance ruling as to the necessity to have temporary GST Registration at various locations/States for each location to claim GST tax installation, testing and commissioning of antennas and also as to the application of Section 22 of the Central Goods and Service Tax (CGST) Act.
C.K.V. Shastri, on behalf of the applicant, reiterated the questions raised in their application and requested to dispose of the case on merits.
The Authority of S.V. Kasi Visweswara Rao, (Additional Commissioner-State Tax) and Sahil Inamdar, (Additional Commissioner Central Tax) rejected the application and observed that the applicant was having his place of business in the state of Telangana and was seeking a ruling on his liability to obtain a registration in other states where he was executing to contracts including installation, testing and commissioning of antennas.
As per Section 96 of the Central Goods and Service Tax Act, the authority for advance ruling constituted under the provisions of State Goods and Services Tax Act would be deemed to be the authority for advance ruling of that state. As seen from this provision there was a territorial nexus between the authority for advance ruling of a state and its geographical boundary.
Therefore, it was ruled that the Advance Ruling Authority constituted under the Telangana State Goods and Services Act could not give a ruling on the liability arising under the Central Goods and Service Tax Act or State Goods and Service Tax Act in a different state.
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