Advance Authority cannot give any decision on Issues that not Covered u/s 97(2) of CGST Act: AAR [Read Order]

The Karnataka Authority for Advance Rulings has held that Advance Authority cannot give any decision on issues that are not covered under section 97(2) of Central Goods and Service tax ( CGST ) Act, 2017. It was found that the applicant is already registered under GST and the questions on which advance ruling has been sought for are not covered under the issues mentioned under Section 97 (2) of the CGST Act and the application is liable for action in terms of Section 98(2) of the CGST/KGST Act 2017.

M/S. Sri Srinivasa Constructions India, the applicant are engaged in execution of various Government projects like Drinking Water Supply schemes, Road Works, Canal Works, Irrigation Works and construction of School/ Hostel buildings, Government Employees Staff Quarters, Court Building etc.,; the duration to execute the project could be minimum 6 months to a maximum of 2 to 3 years; the Government/Government Authorities make the land available ("work site") for all these projects where the contracted work is required to be carried out.

The question before the authority is whether the applicant is required to add the work sites as additional place of business in their GST registration certificate?

Sri. Nikhil B Jain, C.A., & Authorised Representative of the applicant appeared for personal hearing proceedings, reiterated the facts narrated in their application and submitted their argument on maintainability of the instant application.

AAR bench comprising M.P. Ravi Prasad and Kiran Reddy observed that the authority can't give any decision on the issues that are not covered under Section 97 (2) of the CGST Act 2017.  The applicant is already registered under GST and the questions on which advance ruling has been sought for are not covered under the issues mentioned under Section 97(2). Thus, the instant application is liable for action in terms of Section 98(2) of the CGST/KGST Act 2017.

The authority rejected the application filed by the Applicant for advance ruling in terms of Section 98(2) of the CGST Act.

To Read the full text of the Order CLICK HERE

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