Kanchu Shiva Kumar ., In re
Date: June 24, 2024
Subject Matter
GST rate on supply to KREIS: Application withdrawal allowed
Summary
In the case of Kanchu Shiva Kumar, who operates a proprietorship firm named M/s. Shrusti Constructions, an advance ruling was sought regarding the applicable GST rate for works contract services provided to the Karnataka Residential Educational Institutions Society (KREIS). The firm had been charging GST at a rate of 12%, assuming that KREIS qualified as a ‘Government Entity’. However, the tax department challenged this classification, stating that KREIS does not meet the criteria for a ‘Government Entity’, and therefore, the correct GST rate should be 18%. The applicant not only sought clarification on the correct GST rate but also failed to submit the required hard copies of the application. Subsequently, the applicant requested to withdraw the application, which was allowed by the Authority for Advance Ruling (AAR) Karnataka, leading to the application being disposed of as withdrawn.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KARNATAKA
Sri. Kanchu Shiva Kumar, Prop. M/s. Shrusti Constructions, NO.24/A, 1st Floor, RMV 2nd Stage, Sanjay Nagar, Bengaluru- 560094 having GSTIN 29CXXPS5739Q1ZS have filed an application, online, for Advance Ruling under Section 97 of CGST Act 2017 and KGAT Act 2017 read with Rule 104 of CGST Rules 2017 and KGST Rules 2017.
2. The Applicant is a Proprietorship firm, engaged in the business of works contract. They have been charging & collecting GST @ 12% from M/s Karnataka Residential Educational Institutions Society (KREIS) towards their supply, as the recipient (KREIS) is registered as a ‘Government Entity’. The applicable GST rate, on the said supply, as per the department’s contention is 18% basis the recipient KREIS does not qualify to be a Government Entity.
3. In view of the above, the applicant has sought advance ruling on the correct rate of GST applicable in the instant case.
4. The applicant had not submitted the hard copies of the instant application and on enquiry they informed through e-mail dated 16.05.2024 that they intend to withdraw the application and requested to permit them to withdraw the instant application.
5. In view of the above, we pass the following,
RULING
The application filed by the applicant for advance ruling is disposed off as withdrawn.