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

Sundaram Textiles Ltd is unsure whether transferring a business unit's goods to a buyer under a particular arrangement amounts to a supply. Which provision of the CGST Act, 2017 lets it ask an Authority for an advance ruling on this specific doubt?

The doubt can be raised under Section 97(2)(g), which permits an advance ruling application on whether any particular thing done by the applicant with respect to goods or services or both amounts to or results in a supply. Classification, exemption and public authority provisions deal with different questions.

  1. ASection 97(2)(g), whether a thing done amounts to or results in a supply of goods or services or bothCorrect
  2. BSection 97(2)(a), classification of goods
  3. CSection 11(2), special exemption order
  4. DSection 7(2)(b), notified public authority activities

Explanation

Section 97(2)(g) allows an applicant to seek a ruling on whether any particular thing done with respect to goods or services amounts to or results in a supply within the meaning of that term. Clause (a) deals only with classification, Section 11 grants exemptions and Section 7(2)(b) concerns activities of public authorities.

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