Charitable Trust's GST Registration Surrender Query Rejected by AAR as Non-Maintainable

The application for advance ruling regarding surrendering GST registration by a Charitable Trust running a school was rejected as non-maintainable by the Authority for Advance Ruling (AAR). The AAR concluded that the query did not fall within the purview of Section 97(2) of the CGST Act, which specifies the types of questions that can be addressed through an advance ruling. The Trust was advised to file a fresh application if they had specific queries falling within the scope of Section 97(2).

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Issues Involved:
1. Whether the registration under the GST Act should be surrendered.

Issue-Wise Detailed Analysis:

1. Whether the registration under the GST Act should be surrendered:

Facts and Contentions:
- The applicant, a registered Charitable Trust running a school, Maneckji Cooper Education School, sought an advance ruling on whether they should surrender their GST registration.
- The Trust is registered under the Bombay Public Trust Act, 1950, and Section 12A of the Income Tax Act, 1961.
- The main sources of income include tuition fees, income from forms and sundries, interest on securities, dividends, royalty income, lease rent, and advertisement receipts.
- The Trust had migrated its Service Tax registration to GST but claimed that post-July 2017, GST on Royalty Income is under 'Reverse charge,' making their GST registration redundant as they do not have taxable income under GST.

Contention by the Concerned Officer:
- The officer argued that the query is not covered under Section 97(2) of the CGST Act, thus requiring the application to be rejected.
- The officer provided a detailed analysis of the Trust's income sources, stating that while some sources are exempt (e.g., tuition fees, interest, dividends), others like royalty income, lease rent, and advertisement receipts are taxable.
- The officer concluded that the Trust's aggregate turnover, which includes both taxable and exempt supplies, exceeds the prescribed limit, necessitating continued GST registration.

Hearing and Observations:
- During the hearings, the applicant's representatives acknowledged the need for GST registration for certain income sources but sought clarity on whether GST on Royalty Income from M/s. S. Chand & Co. should be paid by them.
- The Authority for Advance Ruling (AAR) noted that the query about surrendering GST registration is not within the purview of Section 97(2) of the CGST Act.
- Section 97(2) specifies the types of questions that can be addressed through an advance ruling, such as classification of goods/services, applicability of notifications, determination of time and value of supply, admissibility of input tax credit, determination of tax liability, requirement for registration, and whether a particular activity amounts to a supply.

Conclusion:
- The AAR concluded that the applicant's query does not pertain to any matters listed under Section 97(2) of the CGST Act.
- Consequently, the application for advance ruling was deemed non-maintainable and rejected.
- The applicant was advised to file a fresh application if they had specific queries within the scope of Section 97(2).

Order:
- The application for advance ruling is rejected as non-maintainable.

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