ADVANCE RULE UNDER CENTRAL GST AT GLANCE.

[RAMASWAMY Advocate]

Goods and service Tax is an indirect tax for the supply of goods or services or both. In other words, it’s a value added tax. This tax is levied and collected for the goods or services, or both supplied for home consumption for the consideration. There are lots of topics and discussions needed under the  concept of GST. The concept of Advance Rule is one among them. Like erstwhile VAT regime,  under Goods and services tax also the concept of Advance Rule exist. Lets discuss about its functions at a bird eye view below:.

1. What is an Advance Rule?

Advance Ruling means a decision provided by the Authority or the Appellate Authority, or National Appellate Authority to an applicant on matter or questions relating to the classification of goods or service or both, admissibility of input tax paid, or deemed to have been paid, determination of time and value of supply of goods or service or both, and includes  whether the applicant is required to be registered under this Act,  the supply of goods or service or both qualify and amount to supply of service or both within its meaning, the liability to pay tax on any goods or service or both etc, proposed to or likely being under taken by the applicant.  

2. who can apply for Advance Rule?

Any applicant  registered under the Act is desirous of obtaining an Advance Ruling , may make use of the common portal in FORM GST-ARA-01 along with relevant documents  duly signed by the applicant and shall be accompanied by a fee to be deposited..

3. Is Person Hearing is  Granted?

No application shall be rejected unless personal hearing opportunity is granted to the applicant. The Authority shall  in writing pass such order as he think fit confirming, modifying the ruling appeal against within ninety days from the date of receipt of the application. If there is any difference of opinion among the members upon pronouncement of ruling, the same shall be stated in writing and will be referred to the Appellate Authority for hearing and decision.on such question. The copy of the advance ruling will be certified true copy of the original by any member of the Authority of Advance Ruling.

In the case of any error noticed on enhancement of the tax liability or reducing the amount of input tax credit, under these circumstances an opportunity of personal hearing is to be granted.

4. Is the Order passed by the Authorities is final or Appealable?

An appeal against the Advance Ruling shall be made by an applicant on the common portal in FORM GST-ARA-02, within the period of thirty days where the ruling is sought and further extended period not exceeding thirty days, and shall be accompanied with a fee to be deposited. In the case of Revenue appeal, An appeal by the concerned officer or jurisdictional officers shall make an application in FORM GST-ARA-03.

5. is the Order passed by the authorities is amenable?

The authority or the appellate authority or the national appellate authority as the case may be, may amend any order passed to rectify any error apparent on the face of the record is notice by the authority or appellate authority etc, on his own or notice by the concerned officer, the applicant or the jurisdictional officer within a period of six months from the date of order.

6. Is the Order Passed by the authorities is valid across the State?

  Advance Ruling pronounced by the Authorities unless there is any law or fact on the applicant who bought the matter for advance ruling, will bind on the concerned officer or the jurisdictional officer respectively in respect of the applicant.

7. What happens in case the Applicant furnished false information?

The ruling will be void where it has been obtained by way of fraud or suppression of material facts, or mis representations of facts etc. The Act empowers the authorities in advance ruling all the powers of civil court.

8. Appellate Forum under Advance Ruling?

The government shall on the recommendation of the Council by a notification constitute an authority known as National Appellate Authority for Advance Ruling for hearing appeal.The appeal lies to National Appellate Authoritiy where conflicting advance rulings are given by the appellate authority of two or more State or Union territories or both etc.

9. What is Limitation to file an appeal before the Appellate Forum?

The appeal should be filed within a period of thirty days on which the ruling is preferred to be appealed is communicated. This can be on sufficient grounds shown by the parties concerned and may be extended by the National Appellate Authority up to ninety days.

10. What are the powers of Appellate Authority? 

The powers of the Authorities, Appellate Authority and National Appellate Authority shall have all the powers of a cvil court for the purpose of discovery and inspection, examining the person on oath, and production of accounts and other records. The proceedings on the above authorities will be of judicial proceedings.

Thus, in view of the above we may conclude  precisely that under the concept of Advance Rule, the government may appoint any officers not below the rank of joint commissioner as member of the Authority for Advance Ruling. Further as stated supra the advance ruling is to be pronounced within ninety days from the  date of receipt of the application. The discussion about is not exhaustive and is only at glance. The objective of this article by the author is to have a fair idea about the concept of Advance Rule under Central GST.