GST - Application to AAR by recipient of supply

[Lalitha Krishnamurthy]

Can the recipient of supply make an application to the Authority for Advance Ruling in respect of taxability of the supply received by him? The Hon'ble Calcutta High Court, in the case of Anmol Industries Limited and Anr vs The West Bengal AAR 2023 (5) TMI 288 - CALCUTTA HIGH COURT, had held so. Is this the final position as of now or are there any contradictory judgements? Would be grateful to receive views of the distinguished experts.

[Sadanand Bulbule]

Explanation to Section 95[c] of the CGST Act defines "applicant" as:

"any person registered or desirous of obtaining registration under this Act".

Thus the law does not restrict filing of an application for Advance Ruling to the supplier alone.

Any applicant seeking Advance Ruling includes recipient of supply as well.

This is the position of law as on date.

[KASTURI SETHI]

Yes. There are contradictory decisions :-

(i) Recipient of goods or services cannot apply for Advance Ruling where tax is payable by the supplier and there is no reverse charge--AAR, Maharashtra in reference : VISVESVARAYA NATIONAL INSTITUTE OF TECHNOLOGY - 2018 (8) TMI 976 - AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA

(ii) 2020 (7) TMI 80 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA In reference : Futuredent

(iii) 2021 (4) TMI 935 - APPELLATE AUTHORITY FOR ADVANCE RULING, TAMILNADU Erode Infrastructures Pvt. Ltd.

(iv) 2019 (3) TMI 592 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA : In Ref. Telstra Telecomminication Pvt. Ltd.

(v) 2018 (11) TMI 1350 - AUTHORITY FOR ADVANCE RULING, TAMILNADU - respect of Naga Ltd.

[Shilpi Jain]

Apply for AAR only if there is some good reason for you to apply.

Else dont get into this trap.

[Shilpi Jain]

Is the recipient liable to pay GST for the transaction that he is asking for a ruling?

If not it is not logical to go for ruling as anyway this ruling will not be binding on the supplier and the related dept authorities!!!

AI Summary

Advance ruling standing: recipient may seek GST taxability ruling, though authorities' decisions conflict and practical limits apply. Whether a recipient may apply for an advance ruling on a supply's taxability turns on applicant standing under Section 95[c], which covers any person registered or seeking registration and thus does not expressly limit applications to suppliers; nevertheless, multiple advance-ruling authorities have held the opposite where the supplier bears the tax liability and no reverse charge applies, creating conflicting authority and practical limits to the utility of such rulings for recipients.