West Bengal AAR rejects SkyHeight’s advance-ruling plea as identical GST questions were already pending

5-Second Takeaway

The West Bengal Authority for Advance Ruling rejected SkyHeight’s application because the questions raised were already pending in a proceeding initiated by the jurisdictional authority, and the proviso to section 98(2) barred admission of the application. The authority noted that, had this been disclosed earlier, it would have rejected the application at the admission stage; it also recorded that the application was filed after initiation of the enforcement case.

SkyHeight had sought a ruling on input tax credit for GST paid on works contract services and other inward supplies used to construct a hotel building. It argued that the hotel was a business apparatus essential for taxable outward supplies such as accommodation, restaurant and banquet services, and that the inward supplies were received wholly and exclusively for those taxable outward supplies. The applicant also contended that the restriction in section 17(5)(d) concerning immovable property constructed “on his own account” did not apply.

The authority did not rule on those ITC questions. It held that the questions in the application were the same as those pending in a proceeding already initiated by the jurisdictional SGST authority. On that footing, the proviso to section 98(2) of the CGST Act debarred admission of the advance-ruling application once the questions were already pending or decided in proceedings under the Act.

The authority further recorded the chronology of events, noting that the GST portal case was created on 5 January 2026 and the advance-ruling application was filed on 9 January 2026, after initiation of the enforcement case. It informed the applicant’s representative in writing that no ruling should be given because admission itself was barred. The application was accordingly rejected.