Global Economy

Only a goods supplier can apply for GST advance ruling

The Maharashtra bench of the GST Authority for Advance Rulings (AAR) has rejected an application filed by a private company saying it was not the supplier of goods or services, but the recipient.

Two conditions must be fulfilled in order to file an advance ruling application, both of which were not met by Mumbai-based USV.

USV had entered into an assignment deed with Novartis on November 30, 2019, to permanently transfer the trademark rights of the Swiss firm for the Indian territory to ‘Jalra’ and ‘Jalra M’.

The effective date of the transfer was either December 10, 2019, or the date of the receipt of the entire consideration by the Swiss company, whichever was later. USV paid full consideration in two tranches before this date.

The two conditions to be met are: First, the question asked should be in relation to supply undertaken by the applicant. Second, the question should be in relation to the supply of goods or services, or both, “being undertaken, or proposed to be undertaken” by the applicant.

In this case, Novartis was the ‘supplier’, and therefore the first condition was not satisfied. Besides, the effective date of the transfer of the trademark was December 10, 2019, whereas the application was filed on January 16, 2020. As a result, the supply was already completed on the date of filing and hence it did not qualify.


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