Facts: The applicant Kandla Port Trust (Deendayal Port Trust – DPT), set up under the Major Port Trust Act, 1963, has referred to the provisions of Section 51 of the Central Goods and Services Tax Act, 2017 (CGST Act, 2017) where under the Government may mandate (i) a department or establishment of the Central Government or State Government, or (ii) local authority; or (iii) Government agencies; or (iv) such persons or category of persons as may be notified by the Government on the recommendations of the council – to deduct tax at the rate of one percent from the payment made or credited to the supplier of taxable goods or services or both, where total value of such supply under the contract exceeds two lakh and fifty thousand rupees.
Issue Involved: whether Deendayal Port Trust is liable to deduct TDS under section 51 of the CGST Act, 2017 and the GGST Act, 2017?
Held: The Hon’ble AAR of Gujarat vide Advance Ruling/SGST&CGST/2018/AR/25 dated July 30, 2018 ruled that the issue raised by the applicant do not fall in the category of Section 97(2) of the Acts. Further the authority is helpless to answer the question raised in the application, as it is lacking jurisdiction to decide the issue. The jurisdiction of the authority does not extend to the questions on determination of this issue. However the application is therefore rejected under sub-section (2) of section 98 of the CGST Act, 2017 and the GGST Act, 2017, without going into the merits of the case, on the issue of lack of jurisdiction, at the stage of admission.
Citation: [TS-529-AAR-2018-NT]