GST Advance Rulings

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"Advance Ruling" Means
  • A decision provided by the Authority or the Appellate Authority
  • To an applicant (may not be a taxable person)
  • On specified matters or questions
  • In relation to the supply of goods or services or both
  • Being undertaken or proposed to be undertaken by the applicant

An advance ruling is sought when an applicant is desirous of knowing the correct and written interpretations of tax laws with respect to activities undertaken or proposed to be undertaken.

Application for advance ruling.

An applicant (any person) desirous of obtaining an advance ruling have to make an application in FORM GST ARA-01 along with payment of fees of Rs 5,000/-, stating the question on which the advance ruling is sought. The matters / question on which the advance ruling can be sought are as under:

  • Classification of any goods or services or both
  • Applicability of a notification issued under the provisions of this Act
  • Determination of time and value of supply of goods or services r both
  • Admissibility of input tax credit of tax paid or deemed to have been paid
  • Determination of the liability to pay tax on any goods or services or both
  • Whether applicant is required to be registered
  • Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.
Procedure of obtaining Advance Ruling
STEPS DESCRIPTION
1 - Application to be made in FORM GST ARA-01 along with payment of fees of Rs 5,000/-, stating the question on which the advance ruling is sought.
Note : Application will not be admitted where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act
2 - Application will be forwarded to the concerned officer and information will be called for, if any required.
3 - After going the information obtained / gathered / collected, the concerned officer may accept or reject the application. However, rejection will be made after giving opportunity of being heard to the applicant.
4 - The Authority will pass the speaking order within ninety days from the date of receipt of application duly certified by all the Authority members.
Appeal to Appellate Authority against Order of Authority
Being aggrieved by the Advance ruling Order of the Authority, appeal can be filed
  • With the Appellate Authority
  • By the concerned officer, the jurisdictional officer or
  • An applicant
  • Within a period of thirty days (extendable by30 days ) from the date of receipt of Advance Ruling Order
  • FORM GST ARA-02 along with a fees of Rs. 10,000 ( in FORM GST ARA-03 and with no fees if by the concerned officer, the jurisdictional officer).

The Appellate Authority will confirm or modify the ruling appealed against within 90 days from the date of application. A copy of the advance ruling signed by the Members will be sent to the applicant, the concerned officer, the jurisdictional officer and to the Authority.

Rectification of Advance Ruling
  • The Authority or the Appellate Authority may amend any order passed by it
  • So as to rectify any error apparent on the face of the record
  • If such error is noticed by the Authority or the Appellate Authority on its own accord, or
  • Is brought to its notice by the concerned officer, the jurisdictional officer
  • The applicant or the appellant
  • Within a period of six months from the date of the order

Provided that no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made after giving an opportunity of being heard.

Note:

Ruling obtained by the applicant or the appellant by fraud or suppression of material facts or misrepresentation of facts will be void ab-initio and it will be deemed that such ruling has never been obtained.