AAR rejects advance ruling application for completed GST transactions under Section 98(2) CGST Act 2017

The Karnataka AAR rejected an application for advance ruling regarding GST applicability on statutory levies collected by various government departments for licenses and approvals. The applicant had already paid Rs. 2,49,660 as GST under reverse charge mechanism in November 2022 but filed the application in April 2023. The AAR held that advance rulings can only be sought for ongoing or proposed supplies, not completed transactions where tax has already been discharged. Since the applicant sought ruling on completed supplies with self-assessed tax already paid, the application was beyond the authority's jurisdiction and rejected under Section 98(2) of CGST Act 2017.

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Issues Involved:
The judgment involves determining the liability of statutory levies collected by various government departments for issuance of licenses under different Acts to goods and services tax as per the Central Goods and Services Tax Act, 2017 and rules framed thereunder.

Question 1:
The first question raised was whether statutory levies collected by the Petroleum & Explosives Safety Organization for issuance of licenses are liable to GST. The applicant sought clarification on the applicability of GST under the Central Goods and Services Tax Act, 2017.

Question 2:
The second query pertained to the exemption of statutory levies collected by the Petroleum & Explosives Safety Organization under specific notifications if they are not liable to GST.

Question 3:
The third issue revolved around the liability of statutory levies collected by the Department of Factories, Boilers, Industrial Safety and Health for issuance of licenses under the Factories Act, 1948, to GST.

Question 4:
The fourth question sought clarification on the exemption of statutory levies collected by the Department of Factories, Boilers, Industrial Safety and Health under specific notifications if they are not liable to GST.

Question 5:
The fifth query was regarding the liability of statutory levies collected by the Karnataka Fire & Emergency Services Department for issuance of a no objection certificate for building plan approval under the Central Goods and Services Tax Act, 2017.

Question 6:
The sixth issue was about the exemption of statutory levies collected by the Karnataka Fire & Emergency Services Department under specific notifications if they are not liable to GST.

Question 7:
The seventh question raised was whether Registration fee or Stamp Duty collected by the Government of Karnataka for registration of lease agreements are liable to GST.

Question 8:
The eighth query was about the exemption of Registration fee or Stamp Duty collected by the Government of Karnataka under specific notifications if they are not liable to GST.

Question 9:
The final issue was whether obtaining licenses, permissions, and no-objections qualifies as a supply of service under the GST Act.

Summary of Findings:
The Authority for Advance Ruling examined the maintainability of the application and found that the questions raised were not in relation to ongoing or proposed supplies but pertained to completed supplies on which tax had already been paid. Therefore, the application was deemed beyond the jurisdiction of the authority and was rejected under Section 98(2) of the CGST Act 2017.

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