Application for advance ruling [Section 97] - GST Ready Reckoner - GST

Application for advance ruling As Per Section 97 read with Rule 104 of CGST Rules Application to be accomplished with Fees An applicant desirous of obtaining an advance ruling under this Chapter may make an application on the common portal in FORM GST ARA-01 and accompanied by fee of Rs. 5,000/-(i.e. 5,000 CGST + 5,000 SGST), to be deposited specified under section 49; stating the question on which the advance ruling is sought. The application shall be the verification contained therein and all the relevant documents accompanying such application shall be signed in the manner specified in rule 26 . Questions on which advance ruling is sought The question on which the advance ruling is sought shall be in respect of any of following [ section 97(2) of CGST Act] Classification of any goods or services or both ; The classification of Goods or Service is the fundamental premise for levying of GST. The other statutory provisions are triggered on the basis of the prime element as goods or service being decided at first place. Further, the correct HSN or SAC needs to be determined. Applicability of a notification issued under the provisions of CGST Act ; Notifications cover the taxability, rate of taxes, exemptions or even procedures to be followed in GST. For instance, the refund procedures and eligibilities. The applicant can seek an Handbook on Advance Ruling under GST 6 advance ruling regarding the applicability of exemption and conditions related to that exemption whether substantial or procedural. and aspects relating to its interpretation. Determination of time and value of supply of goods or services or both ; After deciding the correct nature of supply, the absolute question of valuation and the correct implementation of the valuation rules are of prime importance. The liability to pay tax is further decided by the time of supply provisions. These are of significance, since, the timely deposit of taxes and payments safeguards proper compliance under GST. Admissibility of input tax credit of tax paid or deemed to have been paid; The proper chain of credits is laid under the Input Tax Credit provisions under GST. The admissibility of ITC can be a game changer for any business. Determination of the liability to pay tax on any goods or services or both ; The ascertainment of liability can be a factor for deciding the working capital of the business. Further, a question regarding the fact that whether liability is in the nature of reverse charge or normal/forward charge can be sought in ruling. Whether applicant is required to be registered; To avoid any legal consequences in future, or to avoid suo moto registration and assessment of non-registered persons, the applicant may seek ruling to ascertain the registration requirement. 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. It is to check the applicability of provisions and whether the activity carried by the applicants tantamount to supply under the meaning of GST Act. Appeal to appellate authority by aggrieved person against the order of Authority of advance ruling Section 100(1) of the CGST Act, 2017 provides that concerned officer, the jurisdictional officer or an applicant aggrieved by any advance ruling pronounced by the AAR, may appeal to the Appellate Authority. Thus, it can be seen that a decision of the Appellate authority is also treated as an advance ruling. Form and manner of appeal to the Appellate Authority for Advance Ruling.(AAAR) [ Rule 106 ] (1) An appeal against the advance ruling issued under sub-section (6) of section 98 shall be made by an applicant on the common portal in FORM GST ARA-02 and shall be accompanied by a fee of ten thousand rupees to be deposited in the manner specified in section 49. (2) An appeal against the advance ruling issued under sub-section (6) of section 98 shall be made by the concerned officer or the jurisdictional officer referred to in section 100 on the common portal in FORM GST ARA-03 and no fee shall be payable by the said officer for filing the appeal. (3) The appeal referred to in sub-rule (1) or sub-rule (2), the verification contained therein and all the relevant documents accompanying such appeal shall be signed,- (a) in the case of the concerned officer or jurisdictional officer, by an officer authorised in writing by such officer; and (b) in the case of an applicant, in the manner specified in rule 26 . Rule107A Manual filing and processing . In respect of any process or procedure prescribed herein, any reference to electronic filing of an application, intimation, reply, declaration, statement or electronic issuance of a notice, order or certificate on the common portal shall, in respect of that process or procedure, include manual filing of the said application, intimation, reply, declaration, statement or issuance of the said notice, order or certificate in such Forms as appended to these rules. Ref: Circular No. 25/25/2017-GST dated 21.12.2017 regarding Manual filing of applications for Advance Ruling and appeals before Appellate Authority for Advance Ruling To sum up above (i) An applicant who seeks an advance ruling shall make an application online in the prescribed FORM GST ARA-01 together with a fee of ₹ 5000/-stating the question on which such a ruling is sought. Similarly, an applicant who seeks to file an appeal before the AAAR shall apply online in FORM GST ARA-02 together with a fee of ₹ 10000/-. (ii) The said fee of ₹ 5000/- or ₹ 10000/-as the case may be, shall be paid by the applicant under the CGST Act and the respective State GST Act utilising the amount in the Electronic Cash Ledger in the manner specified in section 49. (iii) The application and all the relevant documents accompanying such application should be digitally signed through Digital Signature Certificate (DSC) or e-signature as specified in Rule 26. (iv) It is advised that the questions or issues in respect of which an advance ruling is sought be simple, direct and specific. The facts brought out in the application should be germane and pertinent to the issue at hand. Facts which do not necessarily concern the issue at hand should not require mention in the application as this might attract unnecessary attention to the business carried out by the assessee. Although an AAR cannot extend its scope by ruling on matters or issues not sought, it is still advisable that an applicant exercise restraint and caution while placing facts in the application. (v) As regards an appeal against an advance ruling by the AAR filed by the concerned officer or the jurisdictional officer , the application shall be filed online in Form GST ARA-03 without any payment of fee. (vi) It is apparent from this section that the Authority will not admit questions or matters which fall outside the purview of the issues stated. (vii) Manual filing of an Application for Advance Ruling: Although Rules 104 and 106 specify filing of an application on the common portal, Rule 107A was introduced to allow manual filing of the same. Accordingly, Circular No. 25/25/2017-GST dated 21.12.2017 was issued detailing the procedures for manual filing of an application for advance ruling till such time the advance ruling module is made available on the common portal. An application for advance ruling, or appeal thereon to be filed by the applicant, the concerned officer or the jurisdictional officer shall be filed in quadruplicate. It is to be noted that though the application shall be filed manually, the fee is required to be deposited online in terms of section 49 of the CGST Act. The Applicant is required to download and take a print of the challan and file the application duly signed by the authorised person with the AAR. One may refer to the above circular for detailed procedures to be followed for manual filing of an application for advance ruling or an appeal to the AAAR. Note : The Circular allowing manual filing of applications for advance ruling shall be effective in a State only until such time an online module is made available on the common portal.