In Advance Ruling No. RAJ/AAR/2023-24/04 -AAR- AAR ruling not available for questions on GST liability already discharged, rules AAR (Rajasthan)
Members Umesh Kumar Garg (Central Tax) & Mahesh Kumar Gowla (State Tax) [04-05-2023]

Read Order: In Re: Mangala Product Private Limited

Chahat Varma

New Delhi, August 23, 2023: The Rajasthan bench of the Authority for Advance Rulings (AAR) has declined to provide a ruling on the questions presented by Mangala Product Private Limited (applicant), as these inquiries pertained to supplies made by them before the submission of the advance ruling application.

In the present case, the applicant, engaged in manufacturing MS ingots, requested an advance ruling on whether Input Tax Credit (ITC) would be applicable on GST paid for advertisement expenses. Secondly, regarding personal bank guarantees provided by the directors for securing loans/credit limits, whether there was a mandatory minimum percentage of the loan value that directors must charge the company, or if it's at the discretion of the directors to determine the consideration.

The two-member bench of Umesh Kumar Garg (Central Tax) & Mahesh Kumar Gowla (State Tax) noted that the applicant filed their application before the Authority for Advance Ruling on 15th October 2022, after already discharging their GST liability. The bench observed that the applicant's primary aim was to determine the correctness of the mechanism they had used for GST payment on the mentioned service, which was counter to the purpose of advance rulings. The bench emphasized that the purpose of advance rulings was to provide clarity for future activities and planning, and that seeking a ruling after such a long period was not in line with this intent.

Thus, the bench concluded that the present application for advance ruling, regarding supplies that had already been carried out, GST payments had been made, and GST returns had been filed, the case was outside the scope of advance ruling procedures.