AAR cannot answer questions related to Appropriateness of Invoice

In re Madhus Tyre Care (GST AAR Karnataka)

In this Advance ruling assesse asked Whether the tax invoice proposed to be issued by the assesse satisfies section 31 of GST Act?, Whether the tax invoice proposed to be issued by the assesse satisfies Rule 46 of GST Rules? and Whether the total amount (inclusive of GST) shown in the main portion of the bill be interpreted as the taxable value under section 31 of GST Act and Rule 46 of GST Rules?

AAR held that Since the questions on which advance ruling is sought by the applicant is not covered under section 97(2) of CGST Act 2017, the questions cannot be answered.

FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KARNATAKA

M/s. Madhus Tyre Care, (hereinafter referred to as the ‘Applicant’) No.05/ 106nc, Madhus Tyre Care, New Sayyaji Rao Road, Bamboo Bazaar, Mysore-570021 having GSTIN 29ACJPP2161L1Z6 have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA 01 is charging the fee of Rs.5,000/- each under the CGST Act and the KGST Act.

2. The Applicant is a Proprietorship concern registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively). The Applicant is a dealer in tyres and tubes and is also involved in providing car alignment and wheel balancing services.

3. The applicant states that in order to ensure the customers are aware of value of each product tax invoices are raised inclusive of GST and the breakup of taxable value and GST is given in a separate column below the invoice. Hence the
applicant filed the instant application seeking advance ruling in respect of the following questions:

i. Whether the tax invoice proposed to be issued by the assesse satisfies section 31 of GST Act?

ii. Whether the tax invoice proposed to be issued by the assesse satisfies Rule 46 of GST Rules?

iii. Whether the total amount (inclusive of GST) shown in the main portion of the bill be interpreted as the taxable value under section 31 of GST Act and Rule 46 of GST Rules?

PERSONAL HEARING/ PROCEEDINGS HELD ON 26-11-2021

4. Sri M. Perumal, Chartered Accountant and Authorised Representative of the applicant appeared for personal hearing proceedings held on 26-11-2021 and reiterated the facts narrated in their application.

FINDINGS & DISCUSSION

5. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act.

6. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant and the relevant facts along with the arguments made by the applicant and also their submissions made by their learned representative during the time of hearing.

7. Section 97(2) of CGST Act 2017 specifies the questions on which advance ruling to be sought and the same is reproduced below:’

Section 97. Application for advance ruling.-

1)  ……………………………………….

2) The question on which the advance ruling is sought under this Act,hall be in respect of,-

(a) classification of any goods or services or both;

(b) applicability of a notification issued under the provisions of this Act;

(c) determination of time and value of supply of goods or services or both;

(d) admissibility of input tax credit of tax paid or deemed to have been paid;

(e) determination of the liability to pay tax on any goods or services or both,

(f) whether applicant is required to be registered;

(g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.

8. Since the questions on which advance ruling is sought by the applicant is not covered under section 97(2) of CGST Act 2017, the questions cannot be answered.

9. In view of the foregoing, we pass the following

RULING

The questions cannot be answered as it is not in the purview of juri dictio of this Authority.