AAR Bars Advance Ruling u/s 98(2) as GST Exemption Question on Manpower Supply to Government Bodies Pending before HC [Read Order]
When an identical issue is already under challenge before a court, an advanced ruling can’t be invoked
![AAR Bars Advance Ruling u/s 98(2) as GST Exemption Question on Manpower Supply to Government Bodies Pending before HC [Read Order]](https://images.taxscan.in/h-upload/2026/04/23/2134229-aar-bars-advance-rulingjpg.webp "AAR Bars Advance Ruling u/s 98(2) as GST Exemption Question on Manpower Supply to Government Bodies Pending before HC [Read Order]")
The Authority for Advance Ruling (AAR), Odisha, declined to entertain the application filed by the applicant, holding that it could not rule on the Goods and Services Tax (GST) exemption on manpower services supply to government bodies as it is pending before the Orissa High Court, thereby attracting the bar under Section 98(2) of the Central Goods and Services Tax (CGST)...
The Authority for Advance Ruling (AAR), Odisha, declined to entertain the application filed by the applicant, holding that it could not rule on the Goods and Services Tax (GST) exemption on manpower services supply to government bodies as it is pending before the Orissa High Court, thereby attracting the bar under Section 98(2) of the Central Goods and Services Tax (CGST) Act, 2017.
The applicant, Reliable Security and Intelligence Services (Orissa) Private Limited, engaged in providing manpower supply services to government bodies such as the Government Polytechnic, Bhubaneswar, and Rural Water Supply and Sanitation (RWSS) divisions across Odisha, had approached the AAR seeking clarity on whether such services qualify for exemption under Sl. No. 03 of Notification No. 12/2017–CT (Rate).
The jurisdictional tax authorities highlighted that a show cause notice had earlier been issued alleging non-payment of GST amounting to ₹1.07 crore for the period 2017-18 to 2020-21. The adjudicating authority subsequently confirmed the demand through an Order-in-Original dated December 31, 2024.
Aggrieved by the confirmation of demand, the applicant filed a writ petition before the Orissa High Court, which is currently pending adjudication, a fact acknowledged by the applicant during the course of the hearing before the AAR.
The bench comprising Harsh Vardhan (Member, CGST) and Pratima Mohanty (Member, SGST) observed that the proper officer had already adjudicated the question of GST exemption, and the outcome was under challenge before the High Court.
Hence, the AAR referred to Section 98(2) of the CGST Act, which expressly prohibits admission of an advance ruling application where the question raised is already pending or has been decided in any proceedings in the case of the applicant.
Accordingly, the application was held to be not admissible.
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