In re Commissioner (GST AAAR Haryana)
In the case In re Commissioner (GST AAAR Haryana), M/s KSC Buildcon Pvt. Ltd. (KBPL) sought an advance ruling on whether their predominantly earthwork contract with a government entity was subject to 5% GST, per Serial No. 3 of Notification No. 31/2017-Central Tax (Rate). The Advance Ruling Authority initially confirmed the 5% GST rate in its decision dated 28.08.2020. However, the Commissionerate, CGST Rohtak, later appealed, asserting that KBPL had omitted relevant information by failing to disclose ongoing proceedings on the same issue with the Gurugram Zonal Unit of DGGI, which began in March 2019 and led to a Show Cause Notice in October 2020. According to Section 98(2) of the CGST Act, an advance ruling cannot be issued if the question is under active consideration in another proceeding. Under Section 104, rulings obtained by misrepresentation or suppression of material facts may be declared void ab initio. Upon receiving this information from the appellant, the Advance Ruling Authority voided KBPL’s ruling on 22.03.2021. Subsequently, the Appellate Authority for Advance Rulings dismissed the appeal from the Commissionerate, CGST Rohtak, as infructuous, noting that the original ruling was already voided due to KBPL’s nondisclosure. This decision underscores the importance of full disclosure in GST rulings and that rulings obtained under suppressed information may not stand valid.
