Can Advance Ruling determine place of supply
Question: Can Advance Ruling be sought to determine the Place of Supply?
Answer: There have been several instances wherein taxpayers faced confusion regarding the determination of the place of supply of goods or services. Thus, the question arose whether the advance ruling authority can help regarding the same. Section 97(2) of The Central Goods and Services Tax specifies the questions in regard to which the advance ruling can be sought.
Section 97(2) reads as follows:
The question on which the advance ruling is sought under this Act, shall be in
(a) classification of any goods or services or both;
(b) applicability of a notification issued under the provisions of this Act;
(c) determination of time and value of supply of goods or services or both;
(d) admissibility of input tax credit of tax paid or deemed to have been paid;
(e) determination of the liability to pay tax on any goods or services or both;
(f) whether applicant is required to be registered;
(g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.
The list mentioned above is the exhaustive list and therefore advance ruling can be sought only on the matters listed above.
Also, regarding the same question, the Authority For Advance ruling – CHHATISGARH vide Order No. STC/AAR/02/2018 dated 06.06.2018 concluded that the application made by Utility Powertech Ltd merit rejection as the determination of the place of supply is not under the purview of AAR.