Construction Company's GST Query on Tender Price Calculation Rejected for Failing to Prove Ongoing Supply Under Section 95(a)

The AAR rejected an application by a construction company seeking clarification on whether tax should be calculated on or inclusive of tender price. The authority found the application non-maintainable as the applicant failed to demonstrate that the supply in question was ongoing or proposed at the time of filing, as required under Section 95(a) of the CGST Act. Despite a virtual hearing where the applicant was present, the submission lacked essential details and clarity. The revenue authority did not submit comments or appear for the hearing.

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Issues:
- Calculation of tax on tender price or inclusive of tender price

Analysis:
- Facts: M/s Royal Techno Projects (India) Pvt. Ltd. sought an advance ruling regarding the calculation of tax on a tender price that includes GST.
- Question: The main issue was whether the tax should be calculated on the tender price or inclusive of the tender price.
- Personal Hearing: A virtual hearing was held where the applicant representatives were present and asked to clarify the application and provide the tender document.
- Revenue's Submission: The revenue authority did not submit any comments or appear for the hearing.
- Findings: The authority found the application to be unclear and lacking essential details. M/s Royal submitted a work order for a road project but failed to demonstrate that the supply in question was ongoing or proposed at the time of filing the application. As per the CGST Act, an advance ruling pertains to goods or services being undertaken or proposed, which was not the case here. Therefore, the application was deemed non-maintainable and rejected as it did not meet the requirements of Section 95(a) of the CGST Act.

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