In Re Isro Propulsion Complex (GST AAR Tamilnadu)
he Tamil Nadu Authority for Advance Rulings (AAR) has declined to issue a ruling sought by ISRO Propulsion Complex (Applicant) concerning the appropriate Goods and Services Tax (GST) rate applicable for reimbursement to one of its contractors. The applicant, in its application dated March 28, 2024, specifically asked whether the GST rate reimbursable to M/s. Tata Projects Limited, Mumbai, should be 5%, potentially based on a Bill of Entry, or 12%, considering the overall contract might qualify as a Works Contract. The AAR ultimately determined that the question fell outside the scope of matters on which it is empowered to rule.
Question Deemed Outside Scope of Advance Ruling Provisions
The AAR meticulously examined the scope of questions permissible for an advance ruling as outlined in Section 97(2) of the Central Goods and Services Tax (CGST) Act, 2017. These categories include classification of goods/services, applicability of notifications, determination of time/value of supply, admissibility of input tax credit, determination of tax liability, registration requirements, and whether an 1 activity constitutes a supply. The AAR observed that the applicant’s query, while framed under ‘determination of liability to pay tax’, did not pertain to its own tax liability. Instead, it concerned the tax liability of its supplier, M/s. Tata Projects Limited, which would subsequently impact the amount ISRO Propulsion Complex needed to reimburse.
