GST Refund Questions Outside Advance Ruling Scope: Maharashtra AAR Rejects Application

In re Lucre International (GST AAR Maharashtra)

Summary: Maharashtra Authority for Advance Ruling rejected the application filed by M/s. Lucre International, a registered exporter engaged in export of goods from India, holding that the questions raised concerning refund of unutilized input tax credit were outside the scope of advance ruling prescribed under Section 97(2) of the CGST Act, 2017. The applicant sought rulings on four questions: whether refund of unutilized ITC under Section 54(3) could be claimed for exports under LUT; whether such refund could be claimed while availing customs-only duty drawback; whether the second proviso to Section 54(3) applied where drawback excluded central tax; and whether, after October 2017, the single rate of drawback not including the GST component could be availed along with GST refund. The Authority examined Section 97(2), which confines advance rulings to specified matters such as classification, applicability of notifications, determination of time and value of supply, admissibility of ITC, tax liability, registration requirements and whether a particular activity amounts to supply. It found that questions concerning admissibility of refund and calculation of refund amount were not covered by Section 97(2). Consequently, no advance ruling could be given on the questions raised and the application was rejected.