After providing the services and paying the Goods and Services Tax (GST), the Rajasthan Authority for Advance Ruling (RAAR) ruled that advance ruling may not be requested. The bench concluded that the application is not covered by advance ruling as a result.
The Applicant that M/s. Vishwas Green Energy, engaged in installation of Solar system on roof top and subsidy is provided by Central Government for the work through Renewable Energy Corporation.
The applicant sought advance ruling on applicability of government subsidy on GST and to generate GST including subsidised invoice.
In the matter personal hearing was granted to the applicant on 14.12.2022 and on 03.02.2023. On behalf of the applicant Manoj Kumar Choudhary, (Authorised Representatives) appeared for Personal Hearing.
The bench observed that here the applicant is the supplier of services, not the recipient of the services. However in the definition of consideration, the phrase “any other person” is mentioned. It is not clear by the applicant whether the subsidy provided by the Central Govt. is to be credited directly in account of the recipient of services or it is to be accorded to the applicant.
Further, observed from the invoice submitted by the applicant that subsidy amount has been shown separately and no GST has been charged on it. Thus in light of Section 15 of Central Goods and Services Tax (CGST) Act such a subsidy which is not claimed from the recipient of services should not be taxable.
The bench consisting of members Umesh Kumar Garg and Mahesh Kumar Gowla noted the Section 95 of CGST Act, 2017 that the authority shall decide on matters or on 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 and “Authority” means the Authority for Advance Ruling, constituted under Section 96.
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 itself. In this case, the supplies of Services have already been undertaken by the applicant and applicant js regularly filing returns.
Moreover, when the panel went through the facts of the case, they observed that the applicant filed their application before the Rajasthan AAR on 14.10.2022 i.e. much later from the supply of services.
The Applicant was discharging his GST liability since starting on the service supplied by him and asked for advance ruling when subsidy has not been given to him from the concerned department. We observe that the applicant’s motto is 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.
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