Latest GST Judgments

For Full Access To All Latest Judgments on GST
Click Here To Subscribe Now
Take a tour of our GST Library

The application for advance ruling is rejected being non-maintainable.

Shanti Prime Publication Pvt. Ltd. Levy of GST — the applicant, seeking an advance ruling in respect of the following questions :-
What is the legal procedure for cancellation of flat which is booked in pre-GST Regime and cancelled in post-GST Regime. Also, GST liability in cases where some small amount is retained, for cancellation (after discussion with customer)
the issue for determination before the Authority for Advance Ruling (‘AAR’) is - whether GST input tax credit of Service Tax and State VAT paid while booking of flat is available to the Developer, if cancelled in GST regime? What will be the methodology to avail Input Tax Credit on the said taxes paid?
Held that— As is informed the transaction of booking of flat was undertaken prior to the implementation of the GST Act in the State of Maharashtra and therefore that sets the record clear that no transaction of booking has happened under the provisions of the GST Act. However, we hasten to add what has been additionally informed is that one fallout of the aforesaid transaction has occurred in the GST regime. This fallout is that the transaction of booking has been cancelled in the GST regime. This cancellation has two aspects. One where the cancellation comes with retention of some amount for cancellation. The other, though not expressly stated, is cancellation without retention of any amount for cancellation. It has been submitted before us that the cancellation with retention of some amount is being considered as a service by the applicant and GST is being discharged in respect of the same. For the reason being so, the applicant has decided not to contest, in the present proceedings, the issue about cancellation with retention of some amount. We therefore move to the issue of cancellation of booking without any consideration for effecting the cancellation. It is a admitted fact that the transaction of booking has taken place in the pre-GST regime. That being so, it would be but obvious an inference that no transaction has taken place in the GST regime. There is no ‘supply’ under the GST Act.
the application for advance ruling is rejected being non-maintainable.Kolte Patil Developers Ltd., In Re…. [2018] 4 TAXLOK.COM 099 (AAR-Maharashtra)