2020 (2) TMI 535 - AAR - GST

Application for advance ruling rejected on jurisdictional grounds under GST Act

The Authority rejected the application for advance ruling, stating it was non-maintainable under the GST Act, 2017, and related Rules. The decision was ... Maintainability of Advance Ruling application - Export of services or not - services for providing Cargo Handling Services for its goods imported into Nepal from Vietnam - HELD THAT:- As per the Section 97(2) of CGST Act, the questions on which advance ruling is sought under this Act, shall be in respect of, matters or issues mentioned in Section 97 (2) (a) to (g) only - the “place of supply of services” does not find mention in the said Section 97 mentioned above. The present application filed for advance ruling is rejected, as being non-maintainable as per the provisions of the GST Act, 2017 and Rules made thereunder. Issues: Determination of whether the services proposed to be rendered qualify as Export of Services under Section 2(6) of the Integrated Goods & Services Tax Act, 2017.Analysis:1. Facts and Contention by the Applicant:- The applicant, registered under GST Laws, entered into a contract with a company in Nepal for providing Cargo Handling Services for goods imported into Nepal from Vietnam.- The services included monitoring loading, quality inspection, weight inspection, and shipping from Vietnam to Nepal.- The goods were imported to Nepal through sea routes via Vishakhapatnam/Kolkata Port under the Treaty of Transit with India.- The applicant coordinated with customs stations at ports and border check posts of both countries for clearance and transhipment, receiving fees in foreign currency.- The applicant claimed that the services satisfied the conditions of Zero Rated Supply under Section 2(6) of the IGST Act.2. Contention by the Jurisdictional Officer:- The jurisdictional officer acknowledged that the applicant met the conditions for Export of Services but raised concerns about the payment received in INR without proof of RBI permission.3. Observations and Findings:- The Authority reviewed the case to determine if the services qualified as Export of Services under Section 2(6) of the IGST Act.- The issue required an analysis of the place of supply, as Export of Services involves the supplier and recipient being in different locations with payment in foreign exchange.- The Authority noted that the questions raised did not fall under the matters specified in Section 97(2) of the CGST Act, which did not include the place of supply of services.- Referring to previous decisions by the Appellate Authority for Advance Ruling in Maharashtra, it was established that the Authority lacked jurisdiction to rule on questions related to the determination of the place of supply of goods or services.- Consequently, based on the legal provisions and precedents, the Authority concluded that the application for advance ruling was non-maintainable under the GST Act, 2017.4. Order:- The Authority rejected the application for advance ruling, citing non-maintainability under the provisions of the GST Act, 2017 and related Rules.This detailed analysis of the judgment highlights the key arguments presented by the applicant and the jurisdictional officer, the legal considerations regarding Export of Services, the jurisdictional limitations of the Authority, and the final decision to reject the application based on legal provisions and precedents.