LEGAL PROVISIONS - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

3. LEGAL PROVISIONS 3.1. Section 95 of the CGST Act, 2017 defines Advance Ruling as a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of Section 100 or Section 101C of the CGST Act, 2017, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 3.2. Section 96 of the CGST Act, 2017 provides that the Authority for advance ruling constituted under the provisions of a State Goods and Services Tax Act or Union Territory Goods and Services Tax Act, shall be deemed to be the Authority for advance ruling in respect of that State or Union Territory. 3.3. Section 97 of the CGST Act, 2017 provides for making Application for advance ruling in the prescribed form and manner, stating the question on which the advance ruling is sought. The following are the question on which the advance ruling can be sought- (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. 3.4. Section 98 of the CGST Act, 2017 stipulates the procedure to be adopted by the AAR on receipt of the application. The procedure in detail is explained in the later part of this Chapter. 3.5. Section 99 of the CGST Act, 2017 states that for the purpose of CGST Act, 2017, the Appellate Authority for Advance Ruling (AAAR) constituted under the provisions of SGST Act or UTGST Act, shall be deemed to be the Appellate Authority in respect of that State or Union Territory. 3.6. Section 101B of the CGST Act, 2017 provides for filing an appeal by the distinct persons against conflicting advance ruling given by the Appellate Authorities of two or more States or Union Territories or both, before the National Appellate Authority. 3.7. Section 102 of the CGST Act, 2017 provides for amendment of any order passed by the AAR or the AAAR to rectify the error apparent on the face of the record, either noticed by such Authority or brought into the notice of the Authority. If such amendment order has the effect of enhancing the tax liability or reducing the admissible input tax credit then the applicant or the appellant has to be given an opportunity of being heard. 3.8. Section 103 of the CGST Act, 2017 stipulates that the advance ruling ordered by the Authority or the Appellate Authority shall be binding only on the applicant and the concerned officer, unless the law, facts or circumstances supporting the original advance ruling have changed. 3.9. Section 104 of the CGST Act, 2017 provides that if the AAR or the AAAR finds that the advance ruling pronounced has been obtained by the applicant by fraud or suppression of facts or misrepresentation of facts, then by an order such ruling shall be declared void ab initio. 3.10. Section 105 of the CGST Act, 2017 provides powers of a Civil Court under the Code of Civil Procedure, 1908, to the Appellate Authority and National Appellate Authority for the purpose of exercising its power regarding discovery and inspection, enforcing the attendance of any person and examining him on oath and issuing commissions and compelling production of books of account and other records. 3.11. The procedure for filing application to the Advance Ruling Authority and the Appellate Authority for Advance Ruling is prescribed under Rule 104 and 106 of the CGST Rules, 2017, respectively.