Definition and matters for Advance Ruling

Section 95(a) defines an ‘advance ruling’ as a decision provided by the Authority for Advance Ruling or the Appellate Authority for Advance Ruling on the following matters to a person who is either registered or desirous of obtaining registration under the GST law:-

• 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 or 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.

Admission or Rejection of application

The Advance Ruling Authority can either admit the application for further hearing or reject it. An application will be rejected at the admission stage if the question raised in the application is pending or has already been decided in any proceedings in the case of an applicant under any of the provisions of this Act.

Difference of opinion amongst members of Advance Ruling or Appellate Authority

If the members of the Advance Ruling Authority differ on any question on which the advance ruling is sought, the members will refer the points of difference to the Appellate Authority which will then decide the reference after hearing the parties within 90 days from the date of reference. If the members of the Appellate Authority also differ on any point in the reference, no advance ruling can be issued in respect of the question under the appeal or reference.

Application Form for Advance Ruling- S. 97

FORM GST ARA-1 is prescribed for filing the advance ruling application as per Rule 104 of the CGST Rules.

Procedure of Advance Ruling – S.98

On receipt of application the authority shall forward copy of application to the concerned officer. The authority after hearing may by order either admits or rejects the application. The authority shall not admit any application where the question raised is already pending or decided in any proceedings. The authority after hearing parties shall pass the order which shall be communicated to the applicant as well as the concerned officer and the jurisdiction officer. If the members of the authority differ on any question on which the advance ruling is sought they shall refer such points to the Appellate Authority for hearing and decision.

Appeal against Advance Ruling – S.100

Appeal against an advance ruling can be filed by the proper officer, jurisdiction officer or aggrieved applicant in FORM GST ARA-2 within 30 days from the date on which the ruling is communicated to the prospective appellant. Delay of 30 days can be condoned for sufficient cause, but no further condonation is provided for.

If the members of the Appellate Authority differ on any point referred to in the appeal, then no advance ruling can be issued in respect of the question involved in the appeal.

Limited scope of binding force of Advance Ruling – S.103

An advance ruling is binding only as between the applicant and the concerned officer or the jurisdictional officer in respect of the applicant. The advance ruling will cease to have any binding force even as between the parties to the ruling, if the law or facts or circumstances supporting the original ruling change.

Rectification of Advance Ruling – S.102

The Authority of Advance Ruling or the Appellate Authority for Advance Ruling 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.

No rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit will be made unless the applicant or the appellant has been given an opportunity of being heard.

Advance Ruling to be void – S.10

Where an advance ruling is obtained by fraud, suppression of material facts or misrepresentation, the Advance Ruling Authority or the Appellate Authority may declare that advance ruling void ab-initio, after hearing the applicant. The Act will then apply to the applicant as if the advance ruling was never made.

The period starting from date of advance ruling and ending with the date of it being declared void will be excluded from the period of limitation for issuing show cause notice under Section 73 or 74.