Page 148 - GSTL_2nd April 2020_Vol 35_Part 1

50 GST LAW TIMES [ Vol. 35
“Section 97. Application for advance ruling. - (1) xxx xxx xxx
(2) The question on which the advance ruling is sought under this Act,
shall be in respect of, -
(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 ser-
vices or both;
(f) whether applicant is required to be registered;
(g) whether any particular thing done by the applicant with re-
spect 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.”
21. A reading of clauses (a) to (g) of sub-section (2) of Section 97 of the
CGST Act would make it clear that 7 items are enumerated as per clauses (a) to
(g) of sub-section (2) of Section 97 and all those clauses other than clause (e)
thereof, are in specific terms. Whereas clause (e) of sub-section (2) of Section 97 of
the CGST Act clearly mandates that the larger issue of “determination of liability
to pay tax on any goods or services or both” would also come within the ambit of
the questions to be raised and decided by the Advance Ruling Authority on
which advance ruling could be sought and rendered under the said provisions.
Whereas Clauses (a), (b), (c), (d), (f) & (g), i.e. the clauses other than clause (e), are
in specific “pigeon holes” and the provision as per clause (e) of sub-section (2) of
Section 97 is in wide terms and the Parliament has clearly mandated that the lat-
ter issue of determination of liability to pay tax on any goods or services or both,
should also be matters on which the applicant concerned could seek advance
ruling from the Advance Ruling Authority on which the said authority is obliged
to render answers thereto. The Parliament has made the said provision envisag-
ing that in transactions in nature, where India is now a growing economy and
has to make its substantial performance in economic growth and development
not only domestic investments, but even foreign investments would also be
heavily required and that host of tax laws has been subsumed into the overarch-
ing umbrella of the goods and sales tax regime introduced by the Parliament and
the Parliament would have certainly taken cognizance of the fact and has intend-
ed that very often applicants would require clarity and precision about various
aspects of taxation in the transactions and that there should be certainty and pre-
cision in those matters, so that the applicant concerned is given the right to seek
advance ruling even in such a larger issue as the one as per clause (e) of Section
97(2) of the CGST Act, which deals with issue of determination of liability to pay
tax on any goods or services or both.
22. In cases of this nature, entities which come with foreign investment
in India would also require certainty and precision about the tax liability so that
they can plan and decide in advance about their functioning as business entities
in India so that its efficacy is maximised so as to bring in a “win win situation”

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