A supplier in the capacity of a recipient of his inward supplies only and not vice versa is only eligible to seek an advance ruling.
Advance ruling- Section 98 of CGST Act- In the instant case, the appellant has sought ruling on the following question:
Whether upfront lease amount paid to M/s. RLDA for the development of Multi functional complex (Operational building) at Erode Railway junction for long term lease for 45 years is exempt under GST?
The appellant has mainly harped on the wordings of S.97(2)(d) of the GST Act, on the ground that since admissibility of ITC paid or deemed to have been paid can be sought as a question for obtaining advance ruling, in as much as that unless the appellant as a recipient of the service is permitted to know the taxability of its inward supply of service, the admissibility of ITC or otherwise will not be known to him.
The Original Authorities had ruled as follows:
“The application for Advance Ruling filed by the applicant is not admitted under sub section (2) of section 98 of the CGST Act 2017 and the TNGST Act 2017 as the supply based on the lease agreement between the applicant and RLDA for which the applicability of the Notification is sought is not undertaken or proposed to be undertaken by the applicant.”
Held that- it is our opinion that a supplier in the capacity of a recipient of his inward supplies only and not vice versa is only eligible to seek an advance ruling and not a mere recipient of goods or services in question even when he may otherwise be a supplier of his own goods or services.
we confirm the Order of the Advance Ruling Authority in this matter.