Every supply is a contract but not every contract is a supply. Therefore Prize money/ stakes will not be subject to GST in the absence of any supply
Levy of GST— On perusal of the entire case records including facts of the case and various submissions and contentions made in this regard, the first moot issue, before us, is as to whether the impugned advance ruling, being allegedly obtained by the Respondent by suppressing the material facts regarding the investigation initiated against him by the DGGI, PZU on the same issues as those raised in the subject advance ruling application, is sustainable in terms of proviso to Section 98(2) read with section 104 of the CGST Act, 2017, or not.
Consequently, if the impugned advance ruling stands the test of sustainability after being subjected to the aforesaid provisions, the second moot issue would be as to whether the prize money/stakes, received by the Applicant-Respondent from the horse racing clubs, for winning the race organised by such horse racing clubs, would be subjected to levy of GST under the provisions of the GST Act.
As per the Appellant- Department, the Respondent has suppressed the material facts regarding the investigation proceedings initiated against him by the DGGI, PZU on the very issues which were raised by the Applicant- Respondent in the subject advance ruling application filed by him before AAR, hence the advance ruling obtained by the Applicant- Respondent is liable to be declared void ab- initio in terms of the provision of section 104 (1) of the CGST Act, 2017.
We, hereby, set aside the advance ruling issued by AAR, and hold that prize money/ stakes will not be subject to GST in the absence of any supply. Accordingly, the Applicant- Respondent is also not entitled to avail any ITC in accordance with the provisions of section 17 (2) of the CGST Act, 2017.