Simplified GST Series –Chapter -18-Advance Ruling /Section 95-99/CGST ACT 2017 Part I
In part I of the Article author explains provisos of CGST ACT 2017 related to Section 95-Definitions related to Advance Ruling, Section 96-Authority for advance ruling, Section 97- Application for advance ruling, Section 98- Procedure on receipt of application and Section 99- Appellate Authority for Advance Ruling.
This section defines the expressions ‘advance ruling’, ‘applicant’, ‘application’, ‘authority’ and ‘appellate authority’, for the purpose of this chapter.
1. “Advance ruling ‘’ – The expression ‘advance ruling’ would mean matters decided by the Authority for Advance Ruling (AAR, in short) and the Appellate Authority for Advance Ruling on the questions raised by the Applicant in respect of matters specified in Section 97(2) or Section 100(1).
2. Such matters or questions could be in relation to supply of goods and/or supply of services being undertaken or proposed to be undertaken by the applicant. Being undertaken refers to supply which is underway.
3. ‘’Applicant’’– The word “applicant” refers to any person already registered or one who desires to get registered under the Act. However, in case of an unregistered person it is mandatory to quote his PAN unless he is a non-resident.
4. No advance ruling can be sought on transactions already undertaken in the past.
5. ‘’Authority’’- refers to the AAR constituted under section 96 of CGST Act, 2017 in each State or Union territory.
6. The expression “Appellate Authority” refers to the Appellate Authority for Advance Ruling constituted under section 99 in each State or Union territory. Therefore, every state/Union Territory will have its own Appellate Authority for Advance Ruling.
7. The expression “National Appellate Authority” means the National Appellate Authority for Advance Ruling referred to in section 101A.
Subject to the provisions of this Chapter, for the purposes of this Act, 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.
Analysis- The AAR shall be located in each State/Union Territory constituted under the provisions of State Goods and Services Tax Act and Union Territory Goods and Services tax Act.
(1) An applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and manner and accompanied by such fee as may be prescribed, stating the question on which the advance ruling is sought.
(2) The question on which the advance ruling is sought under this Act shall be in respect of,
(a) Classification of any goods or services or both;
(b) Applicability of a notification issued under 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.
Analysis- An applicant who seeks an advance ruling should make an application online in the prescribed FORM GST ARA-01 together with a fee of Rs. 5000/-stating the question on which such a ruling is sought.
a) Transitional credits specified in Chapter XX of the CGST Act, 2017
b) E-way bill requirements
c) Anti-Profiteering issues
d) Restraining officers from initiating an action/proceeding under the Act
Let us discuss it in simplified manner-
Receipt of Application-
Pronouncement of advance ruling-
Reference to Appellate Authority
Submission of advance ruling pronounced: A copy of the advance ruling pronounced by the concerned AAR / Appellate Authority, duly signed by the Members and certified, shall be sent to the applicant and to the concerned officer after pronouncement.
Subject to the provisions of this Chapter, for the purposes of this Act, the Appellate Authority for Advance Ruling constituted under the provisions of a State Goods and Services Tax Act or a Union Territory Goods and Services Tax Act shall be deemed to be the Appellate Authority in respect of that State or Union territory.
Analysis- The appellate authority constituted in each State/UT shall be deemed to be the Appellate Authority in respect of that State/UT which will entertain appeals against any advance ruling that is passed by the AAR of that State/UT.
Remaining Sections related to Advance ruling will be discussed in next Article –Advance ruling -Part -2.
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