Recipient of supply can seek advance ruling where tax is payable under reverse charge : AAAR

Recipient of supply can seek advance ruling where tax is payable under reverse charge

Though the recipient is not a supplier, as per the deeming fiction in the section, if he is covered by the notification issued under section 9(3) of the CGST Act, 2017 he does become liable to pay tax and more importantly, all the provisions of this Act become applicable to him. Therefore, all the provisions of the CGST Act, 2017, including the provisions related to the Advance Ruling, as laid down under Chapter XVII of the CGST Act, 2017, will be applicable to such recipients. Also, section 31 (3)(f) of the CGST Act, which deals with 'Tax Invoice", requires a registered person, who is liable to pay tax under section 9(3) to issue a tax invoice in respect of goods or services received by him. As per rule 36 (1)(b), the recipient is also eligible to take input tax credit on the basis of the tax invoice. This makes it clear that the recipient deemed to be liable to pay tax, he is well, within his rights to make an application for Advance Ruling to know whether he is liable to pay tax.■