Classification of Imported Goods Falls Under Customs Authority Ruling: AAR [Read Order]
The bench clarified the jurisdictional boundaries between the GST and Customs Authorities for Advance Ruling, specifically noting that classification issues related to imported goods are not within the purview of the GST AAR.
Classification - Imported Goods - Customs Authority Ruling - AAR taxscan
Classification - Imported Goods - Customs Authority Ruling - AAR taxscan
The Tamil Nadu Authority for Advance Ruling (AAR) has ruled that the classification of imported input goods falls outside the jurisdiction of the GST Authority for Advance Ruling and that the Customs Authority must address such matters for Advance Ruling.
M/S. Sundaram Industries Private Limited, the applicant, a manufacturer of equipment meant for transmission of load to defence, filed an application for an Advance Ruling under Section 97 of the Central Goods and Service Tax (CGST) Act, 2017. The applicant sought a ruling on the classification of input goods used in their manufacturing process, specifically requesting HSN codes for imported inputs.
The Authority, comprising Shri C. Thiyagarajan, Member (CGST) and Shri B. Suseel Kumar, Member (SGST), examined the application's admissibility. The AAR held that the query raised by the applicant falls outside the scope of an 'Advance Ruling' as defined under Section 95(a) of the CGST Act, 2017.
The Authority clarified that its jurisdiction is limited to matters relating to the “outward supply” of goods or services by the applicant. Classification of “inward supplies” (imported goods), including the assessment of duties and IGST at the time of import, vests with the Customs Department. Consequently, the Customs Authority for Advance Ruling (CAAR) was identified as the proper forum to address the applicant's query.
During the personal hearing, the applicant's representative confirmed that they had already filed a similar application with the CAAR in Mumbai and had received Ruling No. CAAR/Mum/ARC/43/2025-26 dated 04.07.2025, which had settled the matter. Therefore, the AAR ruled that the application was not liable for admission and rejected it.
The bench clarified the jurisdictional boundaries between the GST and Customs Authorities for Advance Ruling, specifically noting that classification issues related to imported goods are not within the purview of the GST AAR.
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