2019 (7) TMI 843 - AAR - GST

CGST/GGST Advance Ruling Application Rejected for Procedural Queries

The Authority for Advance Ruling under the CGST/GGST Act, 2017 rejected the application for advance ruling by M/s. Odyssey Tours & Travels Pvt. Ltd. ... Advance Ruling - jurisdiction of Advance Ruling Authority - scope of section 97(2) - procedural/advisory queries not maintainableAdvance Ruling - jurisdiction of Advance Ruling Authority - scope of section 97(2) - procedural/advisory queries not maintainable - Whether the applicant's queries seeking correction of past invoices, manner of rectification in annual return, and applicable exchange rate constitute matters on which an advance ruling may be given under section 97(2) of the Acts. - HELD THAT: - The Authority examined the nature of the questions posed by the applicant and concluded that they are advisory and procedural queries concerning internal rectification of invoices, retrospective corrections on the GST portal, and choice of exchange rate for billing in foreign exchange. Such queries do not fall within the categories enumerated in subsection (2) of section 97 of the Goa Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017 on which advance rulings may be sought. Accordingly, the Authority held that it lacks jurisdiction to decide those advisory/procedural matters and that the questions are not covered by the mandate of the Authority under section 97(2).Application for advance ruling rejected for want of jurisdiction, as the queries are advisory/procedural and not covered by section 97(2).Final Conclusion: The Advance Ruling Authority declined to entertain the application and rejected the request for an advance ruling because the questions raised were advisory or procedural in nature and therefore outside the scope of matters on which the Authority may pronounce under section 97(2). Issues:1. Application for advance ruling under Goa Goods and Services Tax Act, 2017 and Central Goods and Services Tax Act, 2017.2. Correcting tax distribution over different States and Union Territories.3. Rectification of invoices for the last 13 months.4. Rate of exchange for billing in foreign exchange.Analysis:The application for advance ruling was filed by M/s. Odyssey Tours & Travels Pvt. Ltd. seeking guidance under section 97 of the Goa Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017. The applicant admitted to paying GST correctly but failing to distribute tax amounts accurately over various States and Union Territories in the past 13 months. They were advised to re-issue rectified invoices by a specified date to rectify the errors in tax distribution. The applicant had conducted numerous tours during the period in question, and their old invoices were already uploaded on the GST platform. The applicant sought clarification on three main points: whether they could correct their invoices from September 2018 onwards, if rectification of past invoices could be done in the annual return due by December 2018, and the appropriate rate of exchange for billing in foreign currency.The Goa Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017 allow applicants to obtain advance rulings on specific matters, including the classification of goods or services, applicability of notifications, determination of time and value of supply, admissibility of input tax credit, liability to pay tax, registration requirements, and whether certain actions result in supply of goods or services. However, the Authority for Advance Ruling determined that the questions posed by the applicant were more about seeking advice on procedural matters rather than falling within the scope of the Act's provisions for advance rulings. Consequently, the Authority concluded that the questions raised did not fall under its mandate for providing advance rulings.In light of the above analysis, the Authority for Advance Ruling under Section 98 of the CGST/GGST Act, 2017 rejected the application for advance ruling submitted by M/s. Odyssey Tours & Travels Pvt. Ltd. The decision was based on the finding that the questions raised were not within the purview of the Authority's mandate for providing advance rulings under the relevant tax laws.