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CMA Final · Indirect Tax Laws and Practice · Supply under GST

Ganga Textiles Ltd wants certainty on whether a one-time assignment of its brand rights to a group company for Rs 40 lakh is a supply, and also whether it must register. Under Section 97 of the CGST Act, 2017, which statement is correct?

Both questions are admissible. Section 97(2)(g) permits an advance ruling on whether a particular thing done amounts to a supply of goods or services, and Section 97(2)(f) permits one on whether the applicant is required to be registered. The scope is not limited to classification or input tax credit.

  1. AAn advance ruling can be sought on whether the thing done amounts to a supply, and separately on whether registration is requiredCorrect
  2. BAn advance ruling can be sought only on classification and rate of tax
  3. CAn advance ruling can be sought on supply but not on the registration requirement
  4. DAn advance ruling can be sought only on admissibility of input tax credit

Explanation

Section 97(2)(g) allows a question on whether a particular thing done amounts to or results in a supply, and 97(2)(f) allows a question on whether the applicant must be registered. Both are listed, so option C is wrong, and the list is wider than classification or ITC.

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