Gujarat Authority for Advance Ruling Order GUJ/GAAR/R/2018/32 on TDS Liability
- Ruling
- GUJ/GAAR/ADM/2018/32 dated 30.07.2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
In short
The Deendayal Port Trust asked the Authority for Advance Ruling (AAR) if it must deduct Tax Deducted at Source (TDS) under Section 51 of the Goods and Services Tax (GST) Act. The authority had to decide if it had the legal power to answer this specific question about TDS obligations.
What has changed
How it worked before
Businesses often assumed that the Authority for Advance Ruling could provide clarity on any tax-related uncertainty they faced. Many entities believed that if they had a question about their GST compliance, the authority was the correct place to seek a definitive answer.
What has changed
The authority decided it did not have the jurisdiction to answer this question because TDS liability is not listed in the specific matters it is allowed to rule on under Section 97(2) of the GST Act. In practice, this means that even if you have a valid doubt about your tax duties, the authority will reject your application if the topic falls outside its narrow legal scope.
Who this affects
This ruling is relevant to any business or government entity that is unsure about its obligation to deduct TDS under Section 51 of the GST Act. It serves as a warning to those planning to approach the authority for guidance on similar administrative tax questions.
What you should do
You should not assume that this ruling provides an answer to your own TDS liability, as the authority did not address the merits of the case at all. Remember that an advance ruling is only binding on the specific business that asked the question and its own tax officer, so you cannot use this to justify your own tax position to your local authorities.
The ruling in detail
Authority for Advance Ruling
Kandla Port Trust (Deendayal Port Trust)
GUJ/GAAR/ADM/2018/32 dated 30.07.2018 · Gujarat
Questions before the authority
- Whether Deendayal Port Trust is liable to deduct TDS under section 51 of CGST Act, 2017 from the date of effective of the section 51.
Facts
The applicant, a port trust set up under the Major Port Trust Act, 1963, sought clarification on its liability to deduct tax at source (TDS) under Section 51 of the CGST Act, 2017. The applicant expressed uncertainty regarding whether it qualifies as an entity required to deduct TDS under the specified provisions. It requested an advance ruling to determine its legal obligation in this regard.
Ruling
| Question | What the authority ruled |
|---|---|
| Liability to deduct TDS under Section 51 | Rejected Application rejected for lack of jurisdiction under Section 97(2) |
The Authority for Advance Ruling rejected the application at the admission stage. It held that the question raised by the applicant does not fall within the scope of issues that the authority is empowered to decide under Section 97(2) of the CGST Act, 2017. Consequently, the authority declared it lacked the jurisdiction to address the merits of the query.
Reasoning
The authority examined the scope of its powers as defined under Section 97(2) of the CGST Act, 2017, which lists specific matters eligible for an advance ruling. It concluded that the question of whether an entity is liable to deduct TDS under Section 51 is not included in the exhaustive list of matters provided in that section. As a creature of statute, the authority determined it must function strictly within the legal boundaries mandated by the Act. Therefore, it held that it was **lacking jurisdiction** to answer the question and rejected the application without addressing the merits.
Provisions relied on
- Section 51 of the CGST Act, 2017
- Section 97(2) of the CGST Act, 2017
- Section 98(2) of the CGST Act, 2017
- Section 96 of the Gujarat Goods and Services Tax Act, 2017
For the practitioner
This ruling serves as a procedural reminder that the Authority for Advance Ruling is a **statutory body with limited jurisdiction**. Practitioners should note that questions regarding TDS liability under Section 51 do not fall under the purview of Section 97(2). This order does not provide any guidance on the substantive issue of TDS applicability for port trusts, as it was dismissed solely on jurisdictional grounds.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/guj.32-2018-19_dt_30.07.18_kpt.pdf
Legibility of the scan, as read: high.
Prepared 21-10-2026.
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