An advance ruling provides clarity on tax matters before undertaking a transaction. But the Andhra Pradesh Authority for Advance Ruling recently declined to provide a ruling due to lack of supporting documents. Let’s examine the case of M/s Om Shree Maa Mangala Logistics to understand why relevant documents are vital for advance ruling applications.
Facts of the Application by Om Shree Maa Mangala Logistics Pvt Ltd
M/s Om Shree Maa Mangala Logistics Pvt Ltd (the applicant) provides logistic services to M/s XYZ, a foreign company. The services include unloading, storage, loading and transportation of goods from various places in India to vessels at Indian sea ports for export. The applicant also transports goods received at railway stations through rail (by Indian Railways) up to vessels at sea ports. The applicant is registered under GST with registration number 37AADCO1422E1ZW.
Questions Raised Before AAR APGST
The applicant sought advance ruling on the following questions:
i) Rate of GST applicable on invoices raised by the applicant to M/s XYZ for transportation of goods through rail and treatment of GST ITC.
ii) Whether lower GST rate of 5% is service specific or service provider specific (i.e. applicable only for transportation by Indian Railways or any service provider for transportation through rail).
iii) If lower rate of 5% is not applicable, can the amount be claimed from M/s XYZ as reimbursement without raising invoices.
iv) Can separate invoice be raised only for service charges for arranging such services.
Proceedings of Personal Hearing
Personal hearing was conducted on 29/03/2023. The applicant did not attend but requested to decide the case based on issues mentioned in the application.
Findings of the Authority
The Authority noted that the applicant did not submit any relevant documents like invoices, delivery challans, agreements etc. The issues appeared hypothetical without supporting documents. Since the applicant did not provide proper documents or defend the case, the Authority declined to pronounce a ruling based on assumptions. The application was held as not maintainable due to lack of proper documents.
Ruling
The application for advance ruling was held not maintainable in view of lack of proper documents to support the issues raised.
AAR APGST Order Dated 29/05/2023: GST Advance Ruling Denied for Non-Submission of Supporting Documents (Om Shree Maa Mangala Logistics Pvt Ltd)