Case Law Details
In re Pooja Construction Co (GST AAR Gujarat)
GAAR Gujarat does not have the jurisdiction to rule on the question on account of the fact that as per the applicant the place of supply is Madhya Pradesh.
Pooja Construction Co, a partnership firm based in Gujarat, was providing services under a work contract for the Narmada Valley Development Department in Madhya Pradesh. The questions before the AAR Gujarat were whether the company needed to register with State Tax Authorities in Madhya Pradesh, the applicable tax rate for their service, and the appropriate SAC code for the services under the work contract. However, the AAR Gujarat deemed the application as cryptic and found difficulty in comprehending the posed questions. The crucial point of the ruling was that the Gujarat AAR did not have the jurisdiction to rule on the question as the place of supply, as indicated by the applicant, was in Madhya Pradesh. Thus, it was implied that the competent authority to make a ruling on this matter would be the AAR in Madhya Pradesh.
The ‘In re Pooja Construction Co’ ruling underscores the importance of jurisdiction in GST cases. It highlights that the location of service supply plays a key role in determining the competent authority for GST rulings, thus shedding light on the complexities of interstate GST transactions. Companies engaged in interstate business activities must ensure they are aware of the jurisdictional aspects to avoid potential tax issues and disputes.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, GUJARAT
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