The main stress is on the point of double taxation. Therefore, no application can be made to determine whether the liability is justified / valid or not or whether it shall amount to double taxation or not. The current application is not covered within the scope of Section 97 of the CGST Act and thus, the Advance Ruling Authority cannot comment.
Advance Ruling- In the instant case, the applicant is is a co-operative society registered under MP Co-operative Societies Act. 1960.
Question raised before this authority is as follows-
Will the tax paid by service provider under forward charge absolve the recipient from payment of tax?
In this application, the principal assertion of the applicant is that levying GST on the recipient under reverse charge basis after tax has already been paid by the supplier even though the said supplier was not liable to do so, shall amount to double taxation and therefore it is not sustainable. Before entertaining this advance ruling application, it needs to be considered whether this question can be legally proposed before the Advance Ruling Authority in terms of the law?
this Authority is of the view that based within the meaning of Section 97 of the GST Acts, an application for Advance Ruling can only be made to determine the “liability to pay tax” on any goods or services or both. The Applicant himself accepts that the liability as per the notification comes under RCM. but the Tax has been paid on forward charge. The main stress is on the point of double taxation. Therefore, no application can be made to determine whether the liability is justified / valid or not or whether it shall amount to double taxation or not.
Held that- this Authority is of the view that based within the meaning of Section 97 of the GST Acts, an application for Advance Ruling can only be made to determine the “liability to pay tax” on any goods or services or both. The Applicant himself accepts that the liability as per the notification comes under RCM. but the Tax has been paid on forward charge. The main stress is on the point of double taxation. Therefore, no application can be made to determine whether the liability is justified / valid or not or whether it shall amount to double taxation or not.
The main stress is on the point of double taxation. Therefore, no application can be made to determine whether the liability is justified / valid or not or whether it shall amount to double taxation or not. The current application is not covered within the scope of Section 97 of the CGST Act and thus, the Advance Ruling Authority cannot comment.
Advance Ruling- In the instant case, the applicant is is a co-operative society registered under MP Co-operative Societies Act. 1960.
Question raised before this authority is as follows-
Will the tax paid by service provider under forward charge absolve the recipient from payment of tax?
In this application, the principal assertion of the applicant is that levying GST on the recipient under reverse charge basis after tax has already been paid by the supplier even though the said supplier was not liable to do so, shall amount to double taxation and therefore it is not sustainable. Before entertaining this advance ruling application, it needs to be considered whether this question can be legally proposed before the Advance Ruling Authority in terms of the law?
this Authority is of the view that based within the meaning of Section 97 of the GST Acts, an application for Advance Ruling can only be made to determine the “liability to pay tax” on any goods or services or both. The Applicant himself accepts that the liability as per the notification comes under RCM. but the Tax has been paid on forward charge. The main stress is on the point of double taxation. Therefore, no application can be made to determine whether the liability is justified / valid or not or whether it shall amount to double taxation or not.
Held that- this Authority is of the view that based within the meaning of Section 97 of the GST Acts, an application for Advance Ruling can only be made to determine the “liability to pay tax” on any goods or services or both. The Applicant himself accepts that the liability as per the notification comes under RCM. but the Tax has been paid on forward charge. The main stress is on the point of double taxation. Therefore, no application can be made to determine whether the liability is justified / valid or not or whether it shall amount to double taxation or not.