In re Acme Holding (GST AAR Gujarat)
Q1. For the Job work done during F. Y. 18-19, whether the invoice raised by the applicant considered to be a valid tax invoice as per provisions of GST law?
Q2. Whether the taxpayer is rightful to recover the tax from principal supplier of goods upon issuing a ‘tax invoice’ as per provision of the law subsequently?
Q3. In continuation of question 2, whether the recipient can claim ITC?
Held by AAR
Acme submitted subject Application vide Section 97(2)(d) & (e) CGST Act. Section 97(2)(d) is a question on admissibility of ITC of tax paid or deemed to have been paid. Section 97(2)(e) is a question on determination of the liability to pay tax
On reading the application, we infer that a purpose of Acme to file subject application is an attempt to seek Ruling for its customers admissibility to ITC ( Question no 3). The Advance Ruling pronounced, as per Section 103(1) CGST Act, shall be binding only on Acme and its concerned jurisdictional officer and not on Acme’s customer.
During Personal Hearing, Shri Jigar Parikh, CA submitted that Question 1 pertains to the Acme which is their principal question and that question 2 and question 3 of the Advance Ruling Application pertains to Acme’s customers obligation or eligibility to claim ITC. Shri Jigar Parikh submitted to pass a Ruling with reference to Question 1 and that Acme withdraws Question 2 & 3.
Acme’s Questions 1 is not regarding determination of liability to pay tax but pertains to whether the invoice raised by Acme to its customer be considered to be a valid tax invoice.
As per Section 95(a), CGST Act, ‘Advance Ruling’ means a decision provided by the Authority to an applicant on matters/ questions specified in Section 97(2), in relation to the supply of goods/ services or both being undertaken or proposed to be undertaken by the applicant. In view of the statutory provisions of Section 97(2) CGST Act, We hold that the Questions raised by Acme does not fall under the gamut of said Section 97(2).
In view of the above AAR held that Advance Ruling application is not maintainable.
