Question 3 - What is the objective of having a mechanism of Advance Ruling? - FAQ on GST dated 21.9.2016 based on Draft Model GST

Q 3. What is the objective of having a mechanism of Advance Ruling? Ans. The broad objective for setting up such an authority is to: i. provide certainty in tax liability in advance in relation to an activity proposed to be undertaken by the applicant; ii. attract Foreign Direct Investment (FDI); iii. reduce litigation; iv. pronounce ruling expeditiously in transparent and inexpensive manner.