INTRODUCTION: ADVANCE RULING MECHANISM IN GST - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

CHAPTER XIII ADVANCE RULING 1. INTRODUCTION: ADVANCE RULING MECHANISM IN GST 1.1. The Advance Ruling is issued by tax authorities to companies/firms who request for clarification of certain tax matters, specifically when the taxpayer is uncertain about certain provisions of the CGST Act, 2017 and CGST Rules, 2017. 1.2. The provisions of CGST Act, 2017 and CGST Rules, 2017 relevant to this Chapter, are as under Sr. No. Sections / Rules Provision pertaining to 1. Section 95 Definitions of Advance Ruling 2. Section 96 Authority for Advance Ruling 3. Section 97 Application for Advance Ruling 4. Section 98 Procedure on receipt of application 5. Section 99 Appellate Authority for Advance Ruling 6. Section 100 Appeal to Appellate Authority 7. Section 101 Orders of Appellate Authority 8. Section 102 Rectification of Advance Ruling 9. Section 103 Applicability of Advance Ruling 10. Section 104 Advance Ruling to be void in certain circumstances 11. Section 105 Powers of Authority and Appellate Authority 12. Rule 104 Form and manner of application to the Authority for Advance Ruling 13. Rule 106 Form and manner of appeal to the Appellate Authority for Advance Ruling 1.3. Seeking an advance ruling is inexpensive and the procedure is simple and expeditious. It thus provides certainty and transparency to a taxpayer with respect to an issue which may potentially cause a dispute with the tax administration. It is pertinent to note that the advance ruling decision will be applicable only to that applicant and that jurisdictional GST Authority. 1.4. A legally constituted body called Authority for Advance Ruling (AAR) can give abiding ruling to an applicant who is a registered taxable person or is liable to be registered. 1.5. If the taxpayer is aggrieved by the advance ruling given by the Authority for Advance Ruling then he can appeal before an Appellate Authority for Advance Ruling (AAAR). 1.6. Time lines have been prescribed under the law for passing an order by AAR and by AAAR.