Rajasthan GST Advance Ruling RAJ/AAR/2026-27/09 Withdrawal Explained
The Authority for Advance Ruling closed this case without a decision because the business withdrew its application due to filing errors.
- Ruling
- ADVANCE RULING NO. RAJ/AAR/2026-27/09, dated 29.07.2026
- Dated
- 29 Jul 2026
- 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.
The short version
- MTS-EILE (JV) asked about GST rates for a treatment plant contract.
- The applicant requested to withdraw the application before a decision was made.
- The Authority accepted the withdrawal due to clerical errors in the filing.
- No legal precedent or tax guidance was established by this order.
In short
The company asked the Authority for Advance Ruling (AAR) to clarify if a 12% GST rate applied to their infrastructure contract and if a later rate hike to 18% counted as a change in tax liability. Before the authority could answer, the company withdrew its request because of mistakes made in the original paperwork.
What has changed
How it worked before
Businesses often seek advance rulings to confirm tax rates on long-term infrastructure contracts when government notifications change the applicable GST percentage mid-project.
What has changed
Nothing changed. Because the application was withdrawn, the authority did not issue a ruling, meaning there is no new interpretation or guidance for other businesses to follow.
Who this affects
Construction and infrastructure companies working on government projects who are unsure how to handle mid-contract GST rate increases.
What you should do
Do not rely on this order for your own tax planning. An advance ruling only binds the specific business that asked the question and its local tax office; it is not a general law that applies to your business.
If you do nothing
If you assume this order provides a tax benefit or rule that applies to you, you risk underpaying your GST. A tax officer may disagree with your interpretation, leading to interest charges and penalties for incorrect tax filing.
The terms explained
- Advance Ruling
- A formal decision from the tax department that clarifies how GST laws apply to a specific business's situation.
- Works Contract
- A contract that involves both the supply of goods and services, commonly used in construction and infrastructure projects.
- Statutory Tax Liability
- The amount of tax a business is legally required to pay to the government based on current laws.
The ruling in detail
Authority for Advance Ruling
M/s MTS-EILE (JV)
ADVANCE RULING NO. RAJ/AAR/2026-27/09, dated 29.07.2026 · Rajasthan
Questions before the authority
- Whether GST @12% (6% CGST + 6% SGST) was correctly applicable for our FSTP (Faecal Sludge Treatment plant: Similar to STP/WWTP) infrastructure works contract on the date of tender invitation i.e. 24.04.2022 and on the date of bid submission i.e. 28.06.2022 under Notification No. 11/2017-Central Tax (Rate), considering that the bid was prepared and submitted based on the GST provisions prevailing on those dates?
- Whether the increase in GST from 12% (considered in the bid on 24.04.2022 / 28.06.2022) to 18% paid on works executed and billed on or after 19.07.2022 pursuant to Notification No. 03/2022-Central Tax (Rate) dated 13.07.2022 shall be treated as additional statutory tax liability/change in tax in respect of the said ongoing contract?
Facts
The applicant was awarded a contract for the construction, operation, and maintenance of a Faecal Sludge Treatment plant. They submitted their bid based on a GST rate of 12%, but subsequently, the applicable rate was increased to 18% following a notification. The applicant sought a ruling on the correctness of the initial rate and whether the subsequent increase constitutes an additional statutory tax liability.
Ruling
| Question | What the authority ruled |
|---|---|
| Applicability of GST rate and status of tax increase | No ruling issued Application withdrawn by the applicant |
The authority did not provide a ruling on the merits of the questions raised. The application was **withdrawn by the applicant** due to inadvertent typographical or clerical mistakes made during the filing process. Consequently, the request for withdrawal was accepted and no ruling was issued.
Reasoning
The applicant submitted a formal request to withdraw their application via a letter dated 13.07.2026. They cited inadvertent typographical or clerical errors in the original filing as the reason for this request. As the applicant no longer wished to proceed, the Authority for Advance Ruling accepted the withdrawal and closed the matter without addressing the substantive legal questions.
Provisions relied on
- Section 97(2) of CGST/SGST Act, 2017
For the practitioner
This order is **procedural only** and does not provide any legal precedent or interpretation regarding GST rates for infrastructure works contracts. It serves as a reminder that applicants may withdraw their requests if errors are discovered, but practitioners should note that this specific case offers no guidance on the merits of the tax dispute.
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/7-mts_eile_withdrawl_2.pdf
Legibility of the scan, as read: high.
Prepared 10-09-2026.
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