2021 (3) TMI 578 - AAR - GST

Failure to Comply with Form & Fee Requirements Leads to Rejection of Advance Ruling Application

The Authority rejected the application for advance ruling as the applicant failed to file the application in the prescribed format of FORM-GST ARA-01 and ... Application for advance ruling - prescribed form FORM GST ARA 01 - fee for advance ruling (CGST and GGST heads) - rejection under Section 98(2) of the CGST/GGST ActApplication for advance ruling - prescribed form FORM GST ARA 01 - fee for advance ruling (CGST and GGST heads) - rejection under Section 98(2) of the CGST/GGST Act - Application for advance ruling held non maintainable and rejected for failure to file in FORM GST ARA 01 and for non payment of the requisite fee. - HELD THAT: - The Authority examined the application and found it was not filed in the prescribed format FORM GST ARA 01 as required by Section 97(1) read with Rule 104. The applicant had deposited only Rs. 5,000. A combined reading of the corresponding provisions under the Central and Gujarat Acts and Rules shows that a fee of Rs. 5,000 is required to be paid under each head (CGST and GGST), resulting in a total fee requirement of Rs. 10,000 for an advance ruling application to this Authority. Non compliance with the statutory mandate as to form and payment renders the application invalid for the purpose of obtaining an advance ruling. Having regard to these mandatory filing and fee requirements, the Authority did not consider the merits of the substantive tax issue and proceeded to reject the application under the provision dealing with rejection of applications for advance ruling. [Paras 5, 6, 7, 8]Application rejected under Section 98(2) of the CGST/GGST Act for non compliance with filing in FORM GST ARA 01 and non payment of the total fee.Final Conclusion: The application of M/s. Wiptech Peripheral Pvt. Ltd. is rejected as non maintainable under Section 98(2) of the CGST/GGST Act for failure to submit the application in FORM GST ARA 01 and for not paying the combined fee required under the Central and Gujarat rules. Issues: Application for advance ruling not filed in prescribed format and fee not paid as per provisions of CGST Act and Rules.Analysis:1. Non-compliance with prescribed format and fee payment: The applicant, a supplier of Earthing Electrode, sought an advance ruling regarding the GST rate applicable to their product under the Solar Rooftop Policy. However, the advance ruling application was not filed in the prescribed format of FORM-GST ARA-01 and was accompanied by an insufficient fee of only Rs. 5,000, instead of the required Rs. 10,000 as per the provisions of Section 97 of the CGST Act, 2017 and Rule 104 of the CGST Rules, 2017. The Authority highlighted the specific requirements for the application format and fee payment, emphasizing the need for adherence to the statutory provisions.2. Statutory provisions for advance ruling application: The Authority referenced Section 97(1) of the CGST Act, 2017 and Rule 104 of the CGST Rules, 2017, which mandate the submission of an advance ruling application in FORM-GST ARA-01 accompanied by a fee of Rs. 10,000. The ruling clarified that the application should comply with the prescribed format and fee structure outlined in both the CGST Act and the GGST Act, as the provisions are similar unless explicitly stated otherwise. The failure of the applicant to meet these requirements rendered the application invalid under Section 98(2) of the CGST Act, 2017.3. Rejection of the application: Due to the non-compliance with the prescribed format and fee payment, the Authority concluded that the applicant's application for advance ruling was non-maintainable and liable for rejection under Section 98(2) of the CGST/GGST Act, 2017. The ruling emphasized that the applicant's failure to fulfill the statutory requirements regarding the application filing and fee payment precluded any detailed consideration of the substantive issue raised in the application, leading to the rejection of the application.4. Final Ruling: In light of the non-compliance with the prescribed format and fee payment requirements, the Authority ruled to reject the instant application filed by the applicant under Section 98(2) of the CGST/GGST Act, 2017. The ruling highlighted the importance of adhering to the statutory provisions governing the submission of advance ruling applications to ensure the validity and maintainability of such applications before the Advance Ruling Authority.