In re Natikeri Amritha Krishnam (GST AAR Karnataka)
Summary: Shri/Smt. Natikeri Amritha Krishnam, an unregistered person, filed an application for advance ruling concerning the GST implications of developing land and subsequently subdividing it into residential plots for sale. The Applicant stated that she was the owner of the land proposed to be developed and had entrusted development activities, including installation of electricity poles, provision of water supply connections and formation of roads, to a registered contractor. The Applicant further submitted that GST at the applicable rate of 18% was paid on the consideration charged by the contractor for the works contract services. Upon completion of the development activities, the Applicant proposed to subdivide the land into four to five residential plots and sell the developed plots to prospective purchasers.
The Applicant sought a ruling on whether the transaction would come within the purview of the GST Act, 2017 as taxable services and goods and, if taxable, the applicable rate. The Authority observed that the question had not been framed with sufficient clarity but, having regard to the submissions, understood the Applicant to be seeking a ruling on the applicability of GST to the sale of developed land after activities such as land levelling, formation of roads, and laying of water supply and sewage lines.
The application was filed under Section 97 of the CGST/KGST Act, 2017 read with Rule 104 of the CGST/KGST Rules, 2017, in Form GST ARA-01. Under Column 13 of Form ARA-01, the Applicant indicated the category concerning whether a particular thing done with respect to goods or services amounted to or resulted in a supply. The Authority recorded the question under Section 97(2)(g) of the CGST Act, 2017, while stating that it related to determination of liability to pay tax.
The Applicant did not furnish her views or interpretation of law in Form GST ARA-01 and did not submit the same through any annexure or supporting document. More importantly, the Applicant had not discharged the prescribed application fee in full. The Authority recorded that an application for advance ruling under Section 97(1) read with Rule 104 was required to be accompanied by a fee of ₹5,000/- each under the CGST Act and the KGST Act.
The Applicant was provided opportunities to rectify the defects and remit the prescribed balance application fee through office letters dated 06.03.2026, 25.05.2026, 08.06.2026 and 17.06.2026. No reply or clarification was received and the requisite balance fee was not remitted. The Authority also made repeated attempts to contact the Applicant telephonically using the contact number furnished in Form GST ARA-01, but no response was received as the number was consistently found to be switched off or out of service.
In its findings, the Authority stated that the provisions of the Central Goods and Services Tax Act, 2017 and the Karnataka Goods and Services Tax Act, 2017 are pari materia on material aspects. It held that payment of the prescribed fee under Section 97(1) was mandatory for entertaining an application for advance ruling. Since the Applicant failed to remit the prescribed application fee in full despite sufficient opportunities, the application was held liable to be rejected as not maintainable for non-compliance with the mandatory statutory requirement. The Authority consequently did not examine the substantive GST issue concerning the proposed sale of developed land on merits.
The application for Advance Ruling filed by the Applicant was therefore rejected as not maintainable for non-compliance with the mandatory requirement prescribed under Section 97(1) of the CGST/KGST Act, 2017 read with Rule 104 of the CGST/KGST Rules, 2017.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING KARNATAKA
Shri/Smt. Natikeri Amritha Krishnam (hereinafter referred to as the “Applicant”), an unregistered person, filed an application for Advance Ruling vide ARN No. 292300000650ARY under Section 97 of the CGST/KGST Act, 2017, read with Rule 104 of the CGST/KGST Rules, 2017, in Form GST ARA-01. The Applicant has furnished the address #26-2-17-86B/22, Amrutha House, Mukrampady, Puttur, Dakshina Kannada, Karnataka — 574210 as the registered address in the application.
2.1 The Applicant submits that he is the owner of the land proposed to be developed and has entrusted the work of carrying out development activities, such as installation of electricity poles, provision of water supply connections, and formation of roads, to a registered contractor. The Applicant further submits that GST at the applicable rate of 18% is paid on the consideration charged by the contractor for the said works contract services.
2.2 Upon completion of the aforesaid development activities, the Applicant proposes to subdivide the land into four to five residential plots and sell the developed plots to prospective purchasers.
3. In view of the above, the applicant has sought advance ruling in respect of the following questions:-
a) Whether this transaction is come under the perview of GST Act, 2017 as a taxable services and goods. If taxable at what rate?
It is observed that the above question has not been framed with sufficient clarity. However, having regard to the submissions made supra, it appears that the Applicant seeks a ruling on the applicability of GST to the sale of developed land after carrying out development activities such as land levelling, formation of roads, and laying of water supply and sewage lines.
4. Admissibility of the Application: – The Applicant, under Column 13 of Form ARA-01, has indicated the category of issue as follows:
i. 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.
The questions raised by the Applicant under Section 97(2) (g) of the Central Goods and Services Tax Act, 2017, relating to the determination of liability to pay tax.
5. Applicant’s Interpretation of Law: – The Applicant has neither furnished its views or interpretation of law in Form GST ARA-01 nor submitted the same by way of any annexure or supporting document along with the application.
6.1 PERSONAL HEARING PROCEEDINGS: – The Applicant was provided with enough opportunities to rectify the defects in the application and to remit the prescribed balance application fee in terms of Section 97(1) of the CGST/KGST Act, 2017 read with Rule 104 of the CGST/KGST Rules, 2017, an application for Advance Ruling is required to be accompanied by a fee of ₹5,000/- each under the CGST Act and the KGST Act, vide this office letters dated 06.03.2026, 25.05.2026, 08.06.2026 and 17.06.2026. However, no reply or clarification has been received from the Applicant till date, nor has the requisite balance fee been remitted.
6.2 The details of the opportunities provided to the Applicant for compliance are as follows:
| SL. No. | Letter F. No. & date | Tracking ID | Tracking ID status | Communication on Email id & date |
|---|---|---|---|---|
| 1 | KAR/AAR/OTH/ 2025-26 06-03-2026 |
– | – | No e-mail id available |
| 2 | KAR/AAR/OTH/ 2025-26 25-05-2026 |
EK5084275611IN | Delivered on 29-05-2026 |
No e-mail id available |
| 3 | KAR/AAR/OTH/ 2025-26 08-06-2026 |
EK8607814531IN | Delivered on 15-06-2026 |
No e-mail id available |
| 4 | KAR/AAR/OTH/ 2025-26 17-06-2026 |
EK8607853251IN | Delivered on 23-06-2026 |
No e-mail id available |
6.3 Apart from the communications issued through Registered Speed Post and e-mail, this office made repeated attempts to contact the Applicant telephonically on the contact number furnished in Form GST ARA-01. However, no response has been received till date, as the said contact number was consistently found to be either switched off or out of service.
FINDINGS & DISCUSSION
7. At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 and the Karnataka Goods and Services Tax Act, 2017 are pari materia and contain identical provisions on all material aspects, differing only in respect of certain specific provisions. Accordingly, unless a particular reference is made to such dissimilar provisions, any reference to the CGST Act, 2017 shall also be construed as a reference to the corresponding provisions of the KGST Act, 2017.
8. We have carefully examined the application, the documents placed on record and the relevant provisions of the CGST Act, 2017 and the KGST Act, 2017. It is observed that, in terms of Section 97(1) of the CGST/KGST Act, 2017 read with Rule 104 of the CGST/KGST Rules, 2017, an application for Advance Ruling is required to be accompanied by the prescribed fee of ₹5,000/- each under the CGST Act and the KGST Act.
9. Further, it is observed that the Applicant had not remitted the prescribed application fee in full at the time of filing the application. Accordingly, this Authority, through communications issued from time to time, called upon the Applicant to rectify the defect by remitting the requisite balance fee. The Applicant was also afforded sufficient opportunities of personal hearing vide this office letters, as referred to in paragraph 6.1 supra. However, the Applicant neither appeared before this Authority on the scheduled dates nor complied with the requirement of remitting the prescribed balance application fee, despite the opportunities so provided.
10. The requirement of payment of the prescribed fee under Section 97(1) of the CGST/KGST Act, 2017 is mandatory for entertaining an application for Advance Ruling. In the present case, despite being afforded sufficient opportunities, the Applicant has failed to remit the prescribed application fee in full. Accordingly, the application is liable to be rejected as not maintainable for non-compliance with the mandatory statutory requirement.
11. In view of the foregoing, we pass the following:
R U L I N G
The application for Advance Ruling filed by the applicant is hereby rejected as not maintainable for non-compliance with the mandatory requirement prescribed under Section 97(1) of the CGST/ KGST Act, 2017 read with Rule 104 of the CGST/KGST Rules, 2017.
