Sanjeev intends to start a new manufacturing business in Raipur, Chhattisgarh. However, he is not able to determine the classification of the goods proposed to be manufactured and supplied by him since the classification
CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · PYQS · June 2024
Sanjeev intends to start a new manufacturing business in Raipur, Chhattisgarh. However, he is not able to determine the classification of the goods proposed to be manufactured and supplied by him since the classification of said goods has been contentious. Ravi, a friend of Sanjeev, suggested that he should apply for advance ruling so as to avoid litigation later. Raj Kishore, nephew of Sanjeev, is also engaged in the supply of goods similar to which Sanjeev proposes to manufacture and Raj Kishore advised him to apply the same classification as of his, since he has already taken advance ruling order regarding classification of the said goods. Sanjeev also thought it to be a good decision since he was unregistered and thought that he needed to be registered to apply for advance ruling in his name. You are required to advice Sanjeev with respect to the following: (i) Whether Sanjeev is correct in classifying the goods proposed to be manufactured by him on the basis of his nephew Raj Kishore's advance ruling order?
Answer & Explanation:
An advance ruling is binding only on the applicant who has sought it and on the concerned officer. An advance ruling is not applicable to similarly placed other taxable person in the state. Thus, Sanjeev cannot classify the goods to be manufactured by him on the basis of his nephew Raj Kishore's advance ruling order.
Topics: Goods and Services Tax (GST)
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