Case Law Details
In re Barbeque nation Hospitality Ltd. (GST AAR Karnataka)
Section 95(a) of the CGST Act 2017, while defining the term ‘advance ruling’, stipulates that an applicant can seek advance ruling on the questions specified under Section 97(2) of the CGST Act 2017, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the said applicant. In the instant case the questions, on which the applicant seeks advance ruling, are not in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the said applicant, but in relation to the service/ s being received by them. Therefore the instant application is beyond the jurisdiction of this authority and hence is liable for rejection.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
ORDER UNDER SECTION 98(4) OF THE CGST TAX ACT, 2017 & UNDER 98(4) OF THE KGST ACT, 2017
1. M/s Barbeque Nation Hospitality Ltd., (called as the ‘Applicant’ hereinafter), Prestige Zeenath, 3rd Floor,# 8/1, Residency Road, Richmond Town, Bengaluru 560025, Karnataka, having GSTIN number 29AAKCS3053N1ZS, have filed an application for Advance Ruling under Section 97 of CGST Act,2017 & KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the KGST Act.
2. The applicant, engaged in hospitality industry, took the premises, on lease, measuring 5773 sq. ft. of super built up area on the first floor of the commercial building known as “Prestige Plaza” situated at Yelahanka, Bengaluru, under the lease deed dated 08.03.2019, to run the restaurant and food catering services. The applicant is required to pay ‘rent’, ‘car parking charges’, ‘security deposit’, ‘DG consumption charges’ and ‘maintenance charges’ and the applicable GST thereon.
3. The applicant also is required to reimburse the “Electricity Charges”, for electricity consumed, at actuals, in terms of clause 13.1 of the lease deed. The lessors raise monthly invoice for electricity charges, energy tax and demand charges, referring together as “Electricity Charges”, charging GST @ 18%. The applicant raises the objection for charging GST on the said charges and questions the lessors about the legal authority/ source of law. In view of the above the applicant filed the instant application for advance ruling.
4. Section 95(a) of the CGST Act 2017, while defining the term ‘advance ruling’, stipulates that an applicant can seek advance ruling on the questions specified under Section 97(2) of the CGST Act 2017, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the said applicant. In the instant case the questions, on which the applicant seeks advance ruling, are not in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the said applicant, but in relation to the service/ s being received by them. Therefore the instant application is beyond the jurisdiction of this authority and hence is liable for rejection.
5. In view of the above, we pass the following
RULING
The application filed by the Applicant for advance ruling is rejected, in terms of Section 98(2) of the CGST Act 2017.
