Recipient of of goods or services or both cannot seek advance ruling

In re State Water And Sanitation Mission (GST AAR Chhattisgarh)

Whether Jal Jeevan mission is correct in classifying the services of M/s Call Me services provided to the government entities as exempted services and Whether the services are exempt under notification no.12/2017 central tax dated. 28.06.2017?

Any person who is registered under GST or desirous of obtaining a registration under GST may apply for an advance ruling and that the question on which an advance ruling is sought for may be with respect to any of the issues referred to in Section 97(2) ibid which are  in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.

In other words, it is the supplier of goods or services or both who can seek an advance ruling on any of the issues specified in clauses (a) to (g) of Section 97(2) above. In the case before us. we find that the applicant, although registered under GST, is not the supplier of the transaction in question but is the recipient of the supply of service. The applicant has sought for a ruling as a recipient of service. The advance ruling mechanism under GST does not envisage giving a ruling to a recipient of supply of goods or services or both about the said supply at supplier end. As per Section 103 of the GST Act the advance ruling pronounced by the Authority is binding only on the applicant who has sought for the ruling on any matter referred to in Section 97(2) as well as on the concerned officer₄or jurisdictional officer of the applicant. The applicant in the capacity of recipient of service.is not eligible under law to seek a ruling on the taxability of a transaction at supplier’s end, received by him. In fact, we as AAR does not have the authority to determine the classification or nature of service supplied by the service provider of the applicant at the supplier end who in this case happens to be M/s Call me services, on an application made by the applicant. the recipient of service.

If the classification or nature of the service supplied by the service provider cannot be determined for lack of jurisdiction, it automatically flows that determination of place of supply also cannot be determined. Here the applicant is the recipient of service and is seeking a ruling on the tax liability of a transaction made by the supplier of service. We have already made it clear that this Authority is not competent to determine the classification of a service supplied by the third party who is not the applicant seeking the ruling.

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