In re Pigeon Education Technology India Pvt. Ltd. (GST AAR Karnataka)
M/s Pigeon Education Technology India Pvt. Ltd., engaged in providing online education services for students from Classes I to X, filed an application before the Karnataka Authority for Advance Ruling concerning input tax credit (ITC) related to import of services. The applicant procures advertisement services from foreign entities such as Facebook and Google, which it considers to be import of services under GST law. According to the applicant, Integrated GST (IGST) is payable on such services, and after payment of the tax, the corresponding ITC can be availed.
The applicant stated that it had availed import of services and was liable to pay IGST. However, due to seizure of its bank accounts by authorities, it was unable to discharge the IGST liability within the prescribed time limit and, consequently, could not avail the related ITC. The applicant sought an advance ruling on whether the time limit for availing ITC could be extended beyond the statutory due date, contending that the delay was caused by circumstances beyond its control and that the tax liability would be paid along with applicable interest once the seized funds were released.
Upon examination, the Authority observed that the issue raised by the applicant did not fall within the scope of matters on which an advance ruling can be sought under Section 97(2) of the CGST Act, 2017. The Authority further noted that the applicant had mis-declared that the issue was neither pending nor decided in any proceedings under the CGST Act. In view of the proviso to Section 98(2) of the CGST Act, the application was found to be inadmissible and liable to be rejected.
