No Advance Ruling shall be pronounced in question relating to Supply undertaken Prior to Filing of Application: AAAR [Read Order]

The Rajasthan Appellate Authority for Advance Ruling (AAAR) has held that no advance ruling should be pronounced in question relating to supply undertaken prior to filing of application.

The applicant Mangala product private limited is the manufacturer of MS ingots.  The applicant filed an application for clarifying the eligibility of Input Tax Credit on Goods and Services Tax (GST) paid on advertisement expenses.  Whereas, the applicant contended that advertisement expenses used for furtherance of business.

When the matter was considered for hearing Ravi Gupta authorized representative of applicant argued that assessee is eligible for Input Tax Credit. As per Section 97(2)(d) of Central Goods and Services Tax Act, 2017, the Input Tax Credit paid on the activities being undertaken are subject matter of advance ruling.

The applicant sought the advance ruling for the activities being undertaken or proposed to be undertaken by it and the application is not submitted for any past activities.

After considering the submission of the applicant the jurisdictional Deputy Commissioner state tax held that as per Section 16 and 17 of CGST and RGST Act 2017, ITC would be eligible on the GST paid on the advertisement expenses.

After considering the submissions of the applicant and conclusion of jurisdictional officer, the AAAR analyzed that applicant filed his application for seeking advance ruling on 15/10/2022 and activities of supply and payment of GST and submissions of GST returns took place long back. Thus, the matter was already taken place and is out of preview of advance ruling.

Therefore, it can be only decided by competent authority under which jurisdiction of GST paid and GST returns has been submitted.

The authority observed that the applicant did not disclose the practice already being followed by him in the previous year. Further, the question raised before the authority by the applicant is vague in nature.

After reviewing the submissions and provisions, the two-member bench of Appellate Authority of Advance Ruling, Rajendra Kumar (central Taxes) and Harilal Prajapati (State Taxes) observed that scope of ruling of authority for advance ruling is limited to transactions being undertaken or proposed on the matters which are not sort out.

In the present case the advance ruling application was filed on 15/10/2022 before the Rajasthan Authority for Advance Ruling with respect to supply already being undertaken, the GST being paid and GST return has been filed.  Hence, the case is out of purview of Advance ruling.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates