A brief information on Advance Ruling under GST

[Ganeshan Kalyani]

In GST, the advance ruling is a facility for the taxpayer to seek clarity on following points from the concerned authority for advance ruling.

(a) classification of any goods or services or both;

(b) applicability of a notification issued under the provisions of this Act;

(c) determination of time and value of supply of goods or services or both;

(d) admissibility of input tax credit of tax paid or deemed to have been paid;

(e) determination of the liability to pay tax on any goods or services or both;

(f) whether applicant is required to be registered;

(g) 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.

The taxpayer who is seeking clarification on above points should apply online in GST portal in FORM GST ARA-01 along with the payment of fees of ₹ 10,000/- (CGST ₹ 5,000/- + SGST ₹ 5,000/-). The application should also be accompanied with the relevant documents duly signed through electronically mode. The application for advance ruling can also be made through offline mode.

The authority on receipt of application may accept or reject the application. In case any further information/documents is required in relation to advance ruling then the officer may call upon such information/documents from the taxpayer/applicant.  An opportunity of being heard will be given to the applicant before deciding on the advance ruling. The Authority shall pronounce its advance ruling in writing within ninety days from the date of receipt of the application. A copy of the advance ruling pronounced by the Authority duly signed by the members and certified in such manner as may be prescribed shall be sent to the applicant, the concerned officer and the jurisdictional officer after such pronouncement.

The applicant, the concerned officer and the jurisdictional officer aggrieved by any advance ruling pronounced may appeal to the Appellate Authority. The appeal should be filed within a period of thirty days from the date on which the ruling sought to be appealed against is communicated to the concerned officer, jurisdiction officer and the applicant. If the Appellate Authority is satisfied that the applicant was prevented by a sufficient cause from presenting the appeal within the prescribed time then the applicant will be allowed to appeal within a further period of thirty days.

The Appellate Authority after giving opportunity of being heard to the applicant may pass an order within a period of ninety days from the date of filing of the appeal. A copy of advance ruling pronounced by the Appellate Authority duly signed by the Members and certified in such manner as may be prescribed shall be sent to the applicant, the concerned officer, the jurisdictional officer and to the Authority after such pronouncement.

An applicant, being distinct person or any officer authorised by the Commissioner aggrieved by Advance Ruling may prefer to appeal to National Appellate Authority. Every appeal in this respect shall be filed within a period of thirty days from the date on which the ruling sought to be appealed against is communicated to the applicant, concerned officers and jurisdictional officers.

The Authority or the Appellate Authority or the National Appellate Authority may amend any order passed by it so as to rectify any error apparent on the face of the record. If the error on advance ruling is noticed by the Authority or the Appellate Authority or the National Appellate Authority on its own accord, or is brought to its notice by the concerned officer, the jurisdictional officer, the applicant, appellant, the Authority or the Appellate Authority may amend within a period of six months from the date of the order.  

The advance ruling pronounced by the Authority or the Appellate Authority shall be binding only on the applicant, on the concerned officer, or the jurisdictional officer in respect of the applicant. The advance ruling pronounced by the National Appellate Authority shall be binding on the applicant, being distinct persons, who had sought the ruing and all registered person having the same permanent accounting number. on the concerned officer and the jurisdictional officer in respect of applicant,

The Authority or the Appellate Authority or the National Appellate Authority finds that advance ruling pronounced by it has been obtained by the applicant or the appellant by fraud or suppression of material facts or representation of facts. It may by order, declare such ruling to be void ab-initio.