2026-VIL-203-AAR
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SGST Advance Ruling Authority

GST – Karnataka AAR - Invoicing Procedure for Development Services – Maintainability of AAR application under Section 97(2) of CGST Act, 2017 - The Applicant, a developer, entered into a Joint Development Agreement with the landowners for development of a residential layout, bore the entire cost of development, and the developed plots were to be allocated between the landowners and the Applicant in the agreed proportion - Whether the question relating to the procedure of invoicing is maintainable before the Authority under Section 97(2) of the CGST Act, 2017 - HELD - Section 97(2) exhaustively specifies the questions on which an advance ruling can be sought. The question did not seek determination of the value of supply under Section 15 but only the manner in which invoices are to be issued, the amount to be reflected in the invoice and the extent of invoicing. The Authority is constituted to decide only the questions enumerated under Section 97(2) and is not empowered to issue advisory opinions or administrative guidance on accounting practices, documentation requirements, invoicing methodology or the mechanics of compliance. The question does not relate to classification, applicability of a notification, admissibility of input tax credit, tax liability, registration or whether an activity is a supply - The question is not maintainable and no ruling can be given on this issue – Ordered accordingly - Availment, Utilisation and Reversal of Input Tax Credit - Whether the Applicant is entitled to avail and utilise eligible input tax credit towards GST on the taxable outward supply of development services - HELD - The Applicant makes a taxable outward supply of development services to the landowners and is liable to discharge GST on such supply under the forward charge mechanism. Section 16 entitles a registered person to avail input tax credit on goods or services used or intended to be used in the course or furtherance of business, subject to the conditions and restrictions prescribed. Section 49 permits utilisation of the balance in the electronic credit ledger towards payment of output tax. Since the eligible input tax credit is available for utilisation towards output tax, the question of its reversal does not arise. Any ineligible input tax credit shall be reversed in accordance with the Act and the Rules - The Applicant is entitled to avail and utilise eligible input tax credit subject to Sections 16 and 17, and no reversal of eligible credit is required.
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