Failure to Pay Fees Leads to Rejection of GST Advance Ruling Application

The application for Advance Ruling under GST by M/s. Awas Bandhu was rejected due to non-compliance with fee payment requirements. Despite being given the opportunity to rectify the deficiency, the applicant failed to pay the required fees to both SGST and CGST as mandated by Section 97(1) read with Rule 104 of the CGST/SGST Act. The decision underscores the significance of adhering to the prescribed payment structure for SGST and CGST, emphasizing that failure to do so can lead to rejection of the application. The ruling serves as a reminder for applicants to ensure full compliance with statutory provisions to avoid such outcomes.

---

---

Issues:
Application for Advance Ruling under GST - Compliance with fee payment requirements.

Analysis:
The applicant, a registered assessee under GST, provides services to assist the U.P. Housing Ministry in policy implementation for housing across income groups. The applicant sought clarification on whether their activities are exempt from GST. They submitted an application for Advance Ruling along with a fee of Rs. 10,000 to the State GST. However, the applicant failed to comply with the instructions to pay Rs. 5,000 each to SGST and CGST. The authorities noted that the applicant's payment of Rs. 10,000 was made only to SGST, contrary to the requirement of Rs. 5,000 each to SGST and CGST as per Section 97(1) read with Rule 104 of the CGST/SGST Act. The failure to pay the required amounts to both entities rendered the application incomplete and subject to rejection. Despite being given an opportunity to rectify the deficiency, the applicant did not fulfill the fee payment criteria, leading to the unanimous decision by both members to reject the application for Advance Ruling submitted by M/s. Awas Bandhu, Lucknow, U.P., dated 29-3-2019.

This judgment emphasizes the importance of compliance with fee payment requirements under the GST laws, specifically highlighting the necessity to adhere to the prescribed payment structure for SGST and CGST. The ruling underscores that failure to meet these obligations can result in the rejection of an application for Advance Ruling. The decision was based on the provisions of Section 97(1) in conjunction with Rule 104 of the CGST/SGST Act, which clearly outline the obligation to pay fees under each Act in the manner specified by Section 49 of the CGST Act. The judgment serves as a reminder to applicants to ensure full compliance with statutory provisions and procedural requirements to avoid the rejection of their applications for Advance Ruling.

---