CHAPTER– XXII

ADVANCE RULING

113. Definitions

In this Chapter, unless the context otherwise requires, –

(a) “advance ruling” means a written decision provided by the Authority or, as the case may be, the Appellate Authority to an applicant on matters or on questions specified in sub -section (2) of section 116 or sub-section (1) of section 118 , as the case may be, in relation to the supply of goods and/or services proposed to be undertaken or being undertaken by the applicant;

(b) “applicant” means any person registered or desirous of obtaining registration under the Act.

(c) “application” means an application made to the Authority under sub-section (1) of section 116;

(d) “Authority” means the Authority for Advance Ruling, constituted under section 114;

(e) “Appellate Authority” means the Appellate Authority for Advance Ruling constituted under section 115.

114. Authority for Advance Ruling

(1) The Authority shall be located in each State.

(2) The Authority shall comprise of one member CGST and one member SGST to be appointed respectively by the Central Government and the State Government.

(3) The qualifications, eligibility conditions, method and the process of appointment of the members shall be as may be prescribed.

115. Appellate Authority for Advance Ruling

(1) The Appellate Authority shall be located in each State.

(2) The Appellate Authority shall comprise of the Chief Commissioner of CGST as designated by the Board and the Commissioner of SGST having jurisdiction over the applicant.

116. Application for Advance Ruling

(1) An applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and in such manner as may be prescribed, stating the question on which the advance ruling is sought.

(2) The question on which the advance ruling is sought shall be in respect of,

(a) classification of any goods and/or services under the Act;

(b) applicability of a notification issued under provisions of the Act having a bearing on the rate of tax;

(c) the principles to be adopted for the purposes of determination of value of the goods and/or services under the provisions of the Act;

(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 and/or services under the Act;

(f) whether applicant is required to be registered under the Act;

(g) whether any particular thing done by the applicant with respect to any goods and/or services amounts to or results in a supply of goods and/or services, within the meaning of that term.

(3) The application shall be accompanied by a fee as may be prescribed.

117. Procedure on receipt of application

(1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the officers as may be prescribed and, if necessary, call upon him to furnish the relevant records:

PROVIDED that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the said prescribed officers.

(2) The Authority may, after examining the application and the records called for and after hearing the applicant or his authorized representative and the prescribed officer or his authorized representative, by order, either admit or reject the application:

PROVIDED that the Authority shall not admit the application where the question raised in the application is, –

(a) already pending in the applicant’s case before any First Appellate Authority, the Appellate Tribunal or any Court;

(b) the same as in a matter already decided by the First Appellate Authority, the Appellate Tribunal or any Court;

(c) the same as in a matter already pending in any proceedings in the applicant’s case under any of the provisions of the Act;

(d) the same as in a matter in the applicant’s case already decided by the adjudicating authority or assessing authority, whichever is applicable:

PROVIDED FURTHER that no application shall be rejected under this sub-section unless an opportunity has been given to the applicant of being heard:

PROVIDED ALSO that where the application is rejected, reasons for such rejection shall be given in the order.

(3) A copy of every order made under sub-section (2) shall be sent to the applicant and to the prescribed officers.

(4) Where an application is admitted under sub-section (2), the Authority shall, after examining such further material as may be placed before it by the applicant or obtained by the Authority and after providing an opportunity of being heard to the applicant or the authorized representative of the appli cant as well as to the authorized representative of the prescribed or the jurisdictional CGST/SGST officer, pronounce its advance ruling on the question specified in the application.

Explanation. – For the purposes of this sub-section, “authorized representative” shall have the meaning assigned to it in section 105.

(5) Where the members of the Authority differ on any question on which the advance ruling is sought, they shall state the point or points on which they differ and make a reference to the Appellate Authority for hearing and decision on such question.

(6) The Authority or, as the case may be, the Appellate Authority shall pronounce its advance ruling in writing within ninety days of the receipt of application or, as the case may be, reference made under sub-section (5).

(7) Where the members of the Appellate Authority differ on any point or points referred to it under sub-section (5), it shall be deemed that no advance ruling can be issued in respect of the question covered by the reference application.

(8) A copy of the advance ruling pronounced by the Authority or, as the case may be, the Appellate Authority duly signed by the Members and certified in the prescribed manner shall be sent to the applicant and the jurisdictional CGST / SGST officer and, as the case may be, to the Authority, as soon as may be, after such pronouncement.

(9) Any ruling pronounced under this section shall have prospective effect only.

118. Appeal to the Appellate Authority

(1) The prescribed or jurisdictional CGST/SGST officer or, as the case may be, an applicant aggrieved by any advance ruling pronounced under sub-section (4) of section 117, may appeal to the Appellate Authority.

(2) Every appeal under this section 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 prescribed or the jurisdictional CGST/SGST officer or, as the case may be, the applicant:

PROVIDED that the Appellate Authority may, if it is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of thirty days, allow it to be presented within a further period not exceeding thirty days.

(3) Every appeal under this section shall be in the prescribed form and shall be verified in the prescribed manner.

119. Orders of the Appellate Authority

(1) The Appellate Authority may, after giving the parties to the appeal, an opportunity of being heard, pass such order as it thinks fit, confirming or modifying the ruling appealed against.

(2) The order referred to in sub-section (1) shall be passed within a period of ninety days from the date of filing appeal under section 118.

(3) Where the members of the Appellate Authority differ on any point or points referred to in appeal, it shall be deemed that no advance ruling can be issued in respect of the question covered under the appeal.

(4) A copy of the advance ruling pronounced by the Appellate Authority duly signed by the Members and certified in the prescribed manner shall be sent to the applicant, the prescribed or the jurisdictional CGST / SGST officer and to the Authority, as soon as may be, after such pronouncement.

120. Rectification of Advance Ruling

The Authority or, as the case may be, the Appellate Authority may amend any order passed by it under section 117 or section 119 , as the case may be, so as to rectify any mistake apparent from the record, if such mistake is noticed by the Authority or, as the case may be, the Appellate Authority on its own accord, or is brought to its notice by the prescribed or the jurisdictional CGST / SGST officer or the applicant within a period of six months from the date of the order:

PROVIDED that no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made unless the Authority or, as the case may be, the Appellate Authority has given notice to the applicant or, as the case may be, the appellant of its intention to do so and has allowed him a reasonable opportunity of being heard.

Explanation.— For the removal of doubts, it is hereby clarified that the Authority or, as the case may be, the Appellate Authority shall not, while rectifying any mistake apparent from record, amend substantive part of its order.

121. Applicability of Advance Ruling

(1) The advance ruling pronounced by the Authority or, as the case may be, the Appellate Authority under this chapter shall be binding only –

(a) on the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 116 of the application for advance ruling;

(b) on the jurisdictional tax authorities in respect of the applicant.

(2) The advance ruling referred to in sub-section (1) shall be binding as aforesaid unless the law, facts or circumstances supporting the original advance ruling have changed.

122. Advance Ruling to be void in certain circumstances

(1) Where the Authority or, as the case may be, the Appellate Authority finds that advance ruling pronounced by it under sub-section (4) of section 117 or under sub-section (1) of section 119 has been obtained by the applicant or, as the case may be, the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of the Act shall apply to the applicant as if such advance ruling had never been made:

PROVIDED that no order shall be passed under this sub-section unless an opportunity has been given to the applicant of being heard.

Explanation.- The period beginning with the date of such advance ruling and ending with the date of order under this sub-section shall be excluded in computing the period specified in sub-sections (2) and (8) of section 66 or sub-sections (2) and (8) of section 67, as the case may be.

123. Powers of the Authority and Appellate Authority

(1) The Authority or, as the case may be, the Appellate Authority shall, for the purpose of exercising its powers regarding discovery and inspection, enforcing the attendance of any person and examining him on oath, issuing commissions and compelling production of books of account and other records, have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908).

(2) The Authority or, as the case may be, the Appellate Authority shall be deemed to be a civil court for the purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974), and every proceeding before the Authority or the Appellate Authority shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code (45 of 1860).

124. Procedure of the Authority and the Appellate Authority

The Authority or, as the case may be, the Appellate Authority shall, subject to the provisions of this Chapter, have power to regulate its own procedure in all matters arising out of the exercise of its powers under the Act.

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