The instant application is liable for rejection under Section 98(2) of the CGST Act 2017.
Advance Ruling— Section 98 of CGST Act—In the instant case, the applicant is into manufacturing of currency paper and other security paper.
The applicant has sought advance ruling in respect of the following questions:
a. Applicability of GST on Liquidated damages for delay in supply as penalty (this is in nature of penalty)
b. Applicability of GST on Liquidated damages for compensation of extra cost on account of default from the supplier (this is in the nature of abetment to the cost of purchase)
c. Applicability of GST on sale of tender form/fees for participation in the tender. This being a nominal fees collected just to have seriously interested participation. (this is in the form of avoiding non-serious participation)
The Applicant has requested this authority to quash the application filed for advance ruling, quoting the reason that they have already got the clarity on the applicability of GST on the transactions for which advance ruling was sought and that they do not require any further proceedings.
Held that— The application filed by the Applicant for advance ruling is hereby rejected.
The instant application is liable for rejection under Section 98(2) of the CGST Act 2017.
Advance Ruling— Section 98 of CGST Act—In the instant case, the applicant is into manufacturing of currency paper and other security paper.
The applicant has sought advance ruling in respect of the following questions:
a. Applicability of GST on Liquidated damages for delay in supply as penalty (this is in nature of penalty)
b. Applicability of GST on Liquidated damages for compensation of extra cost on account of default from the supplier (this is in the nature of abetment to the cost of purchase)
c. Applicability of GST on sale of tender form/fees for participation in the tender. This being a nominal fees collected just to have seriously interested participation. (this is in the form of avoiding non-serious participation)
The Applicant has requested this authority to quash the application filed for advance ruling, quoting the reason that they have already got the clarity on the applicability of GST on the transactions for which advance ruling was sought and that they do not require any further proceedings.
Held that— The application filed by the Applicant for advance ruling is hereby rejected.