Jurisdiction of AAR to Decide Question Relating to Place of Supply—V.N. Damodar

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The Tax Publishers GST--Jurisdiction Jurisdiction of AAR to Decide Question Relating to Place of Supply V.N. Damodar The learned author in this write-up tries to discuss an important issue as whether the Authority for Advance Ruling has jurisdiction to decide the question relating to place of supply. The decision is based on a recent Appellate Authority for Advance Ruling decision in the case of Myntra Designs (P.) Ltd.'s case, KAR/AAAR/06/2022, decided on 21-11-2022. 1. Application for advance ruling Section 97 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with the provisions relating to application for advance ruling. As per sub-section (1) of section 97, an applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and manner and accompanied by such fee as may be prescribed, stating the question on which the advance ruling is sought. Sub-section (2) of section 97 provides that the question on which the advance ruling is sought under the Act, shall be in respect of,-- (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. 2. Power of Authority for Advance Ruling to decide question relating to place of supply Since the place of supply is not mentioned in sub-section (2) of section 97 of the Act, the Authority for Advance Rulings of various States have been holding that AAR has no jurisdiction to decide the question relating to determination of place of supply. In the case of Testmesures Spherea Solutions (P) Ltd., In re (2023) 109 ITPJ (SG) 149 (AAR-Karn), the Karnataka Authority for Advance Ruling had held that the classification of services provided to parent company is 'maintenance and repair services of other machinery and equipment'under SAC 998719. On the question as to whether it can be considered as export of services, ruling cannot be given as it involves the determination of place of supply, which is outside the jurisdiction of this Authority. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Jurisdiction

Jurisdiction of AAR to Decide Question Relating to Place of Supply

V.N. Damodar

The learned author in this write-up tries to discuss an important issue as whether the Authority for Advance Ruling has jurisdiction to decide the question relating to place of supply. The decision is based on a recent Appellate Authority for Advance Ruling decision in the case of Myntra Designs (P.) Ltd.'s case, KAR/AAAR/06/2022, decided on 21-11-2022.

1. Application for advance ruling

Section 97 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with the provisions relating to application for advance ruling. As per sub-section (1) of section 97, an applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and manner and accompanied by such fee as may be prescribed, stating the question on which the advance ruling is sought.

Sub-section (2) of section 97 provides that the question on which the advance ruling is sought under the Act, shall be in respect of,--

(a) classification of any goods or services or both;

(b) applicability of a notification issued under the provisions of this Act;

(d) admissibility of input tax credit of tax paid or deemed to have been paid;

(e) determination of the liability to pay tax on any goods or services or both;

(f) whether applicant is required to be registered;

(g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.

2. Power of Authority for Advance Ruling to decide question relating to place of supply

Since the place of supply is not mentioned in sub-section (2) of section 97 of the Act, the Authority for Advance Rulings of various States have been holding that AAR has no jurisdiction to decide the question relating to determination of place of supply.

In the case of Testmesures Spherea Solutions (P) Ltd., In re (2023) 109 ITPJ (SG) 149 (AAR-Karn), the Karnataka Authority for Advance Ruling had held that the classification of services provided to parent company is 'maintenance and repair services of other machinery and equipment'under SAC 998719. On the question as to whether it can be considered as export of services, ruling cannot be given as it involves the determination of place of supply, which is outside the jurisdiction of this Authority.