AAR rejects clarification requests on appellate orders, directs refund claims under Section 54 CGST Act 2017

The AAR Odisha ruled that questions seeking clarifications on an Appellate Authority's order fall outside Section 97(2) scope and cannot be admitted for advance ruling. The Authority declined to provide classifications or comments on appellate orders under GST Act. Regarding the 6% tax differential (18%-12%) paid before the appellate order, the AAR found this question also doesn't fall under Section 97(2) provisions. For refund claims of excess tax paid, the AAR directed the applicant to follow Section 54 procedures of CGST Act 2017, which governs tax refunds.

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Issues Involved:
1. Classification and rate of tax applicability on the entire value of the works contract.
2. Applicability of the specific tax rate throughout the life of the contract under GST.
3. Determination of excess tax paid and eligibility for refund under Section 54.
4. Procedure for claiming excess tax paid under GST provisions.

Issue-wise Detailed Analysis:

1. Classification and Rate of Tax Applicability on the Entire Value of the Works Contract:
The applicant sought clarification on whether the classification and rate of taxes determined by the Appellate Authority for Advance Ruling (AAAR) would apply to the entire value of the works contract dated 02.05.2016. The AAAR had previously concluded that the supply made by the applicant to IIT Bhubaneswar is a works contract service under the Central Goods and Services Tax Act and is eligible for a specific rate of tax at 12% GST. However, the Authority for Advance Ruling (AAR) noted that questions about the applicability of the AAAR's order do not fall within the purview of Section 97(2) of the CGST Act, 2017, and thus cannot be admitted for advance ruling.

2. Applicability of the Specific Tax Rate Throughout the Life of the Contract Under GST:
The applicant queried whether the specific tax rate of 12% would be applicable throughout the life of the contract under the GST regime. The AAR reiterated that such questions regarding the applicability of the AAAR's order do not fall under Section 97(2) of the CGST Act, 2017. Therefore, the AAR is not in a position to provide classifications or comments on the AAAR's order, and the application on this matter is not eligible for advance ruling.

3. Determination of Excess Tax Paid and Eligibility for Refund Under Section 54:
The applicant questioned whether the taxes paid at 18% prior to the AAAR's ruling, which determined a 12% tax rate, could be considered excess and refundable. The AAR noted that this question does not fall under any provisions of Section 97(2) of the CGST Act, 2017. Consequently, the AAR did not discuss the merits of this issue and did not provide a ruling on the excess tax paid.

4. Procedure for Claiming Excess Tax Paid Under GST Provisions:
The applicant sought guidance on the proper procedure for claiming the excess amount paid under GST provisions. The AAR directed the applicant to Section 54 of the CGST Act, 2017, which deals with the refund of taxes. The applicant was advised to go through the procedures and provisions outlined in this section for claiming any excess tax paid.

RULING:
The AAR ruled that the subject application cannot be admitted as the questions raised do not fall under any provisions of Section 97(2) of the CGST Act, 2017. Therefore, the application seeking a ruling on the stated questions is not maintainable and is rejected. The applicant or jurisdictional officer, if aggrieved by this ruling, may appeal to the Odisha State Appellate Authority for Advance Ruling under Section 100 of the CGST/OGST Act, 2017, within 30 days from the date of receipt of the advance ruling.

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