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TMI BlogAdvance Ruling Mechanism in GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... ng means 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 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. The definition of Advance ruling given under the Act is a broad one and an improvement over the existing systems of advance rulings under Customs and Central Excise Laws. Under the present dispensation, advance rulings can be given only for a proposed transaction, whereas under GST, Advance ruling can be obtained for a proposed transaction as well as a transaction already undertaken by the appellant. Objectives of Advance Ruling The broad objectives for setting up a mechanism of Advance Ruling include: i. provide certainty in tax liability in advance, in relation to an activity proposed to be undertaken by the applicant; ii. attract Foreign Direct Investment (FDI); iii. reduce litigation; iv. pronounce ruling expeditiously in transparent and inexpensive manner; What are the matters/questions specified in Section 97( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the person who has applied for an advance ruling. Fees for filing an application before AAR and AAAR Fee deposited by the Applicant or applicant In case of AAR fee of ₹ 10000/- (Five thousand each under CGST and SGST Act) has to be deposited along with every application GST ARA-01 to AAR. In case of AAAR fee of ₹ 20000/- (Ten thousand each under CGST and SGST Act) has to be deposited along with every application GST ARA-02 to AAAR. Fee deposited by the Department In respect of application by department in form GST ARA-03 , no fee is required to be enclosed. Time period for applicability of Advance Ruling The law does not provide for a fixed time period for which the ruling shall apply. Instead, it has been provided that advance ruling shall be binding till the period when the law, facts or circumstances supporting the original advance ruling have not changed. However, an advance ruling shall, by an order passed by the AAR/AAAR, be declared to be ab initio void if the AAR or AAAR finds that the advance ruling was obtained by the applicant by fraud or suppression of material facts or misrepr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resentative as well as the jurisdictional officers of CGST/SGST. If there is difference of opinion between the two members of AAR, they shall refer the point or points on which they differ to the AAAR for hearing the issue. If the members of AAAR are also unable to come to a common conclusion in regard to the point(s) referred to them by AAR, then it shall be deemed that no advance ruling can be given in respect of the question on which difference persists at the level of AAAR. Appeals against order of AAR If the applicant is aggrieved with the finding of the AAR, he can file an appeal with AAAR. The form and manner of filing appeal with AAAR is given in Rule 106 of the CGST Rules, 2017. An appeal against the advance ruling 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. Similarly, if the prescribed or jurisdictional officer of CGST/SGST does not agree with the finding of AAR, he can also file an appeal with AAAR. The word prescribed officer of CGST/SGST means an officer who has been designated by the CGST/SGST administration in regard t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, till the advance ruling module is made available on the common portal, the following conditions and procedure have been prescribed for the manual filing and processing of the applications. Form and Manner of Application to the Authority for Advance Ruling An application for obtaining an advance ruling under sub-section (1) of section 97 of the CGST Act and the rules made thereunder, shall be made in quadruplicate, in FORM GST ARA-01. The application shall clearly state the question on which the advance ruling is sought. The application shall be accompanied by a fee of five thousand rupees which is to be deposited online by the applicant, in the manner specified under section 49 of the CGST Act. It is reiterated that though the application shall be filed manually till the advance ruling module is made available on the common portal, the fee is required to be deposited online in terms of section 49 of the CGST Act. In order to make the payment of fee for filing an application for Advance Ruling on the common portal, the applicant has to fill his details using Generate User ID for Advance Ruling under User Services . After entering the email id and mobile number, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce ruling module is made available on the common portal, the fee is required to be deposited online in terms of section 49 of the CGST Act. The payment of fee shall be made as per the procedure detailed earlier. An appeal made by the concerned officer or the jurisdictional officer referred to in section 100 of the CGST Act and the rules made thereunder shall be filed in quadruplicate, in FORM GST ARA-03 and no fee shall be payable by the said officer for filing the appeal. As per section 100 (2) of the CGST Act, the appeal 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 or the concerned officer or the jurisdictional officer, as the case maybe. The appeal, 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 above The application for advance ruling or the appeal before the Appellate Authority shall be filed in the jurisdictional office of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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