Key Points related to Advance Ruling under GST (Section 95-106 of CGST Act):

1. Advance Ruling means the decisions or order passed by the Appellate Authority or the Authority on the questions raised by the applicant in relation to supply of goods / services undertaken or proposed to be undertaken by such applicant.

2. Applicant who filed the application for advance ruling may be the registered person or desirous to get GST registration.

3. Following are the specified questions which can be raised for Advance Ruling:

  • Classification of goods or services or both.
  • Applicability of notification issued under the provision of the act.
  • Determination of time and value of supply of goods or services.
  • Admissibility of Input tax Credit of tax paid or to be paid.
  • Determination of tax liability under GST.
  • Whether applicant is required to get registered under the Act
  • Any particular thing has been done in respect of goods or services which results the supply of goods or services as per GST Act.

4. Members of Advance Ruling Authority are not below the rank of Joint Commissioner.

5. Application for Advance Ruling cannot be filed against the question which is already pending or decided by the authority.

6. Application for advance ruling cannot be rejected without giving the opportunity of being heard.

7. The authority shall pronounce its advance ruling in writing within 90 days from the date of application.

8. The Authority may amend the order passed against the question raised within 6 months from the date of order. The order cannot be rectify without giving the opportunity of being heard in case when rectification in order results to enhancement of tax liability.

9. If the Advance Ruling which is pronounced by the authority, has been obtained by the applicant by fraud or through misrepresentation of facts or suppression of the material facts, then the advanced ruling pronounced will be void ab initio and all the relevant applicable provisions under the GST act will be applied thereupon as such advance ruling has never been made.

10. Following are the forms and the government fees to apply for Advance Ruling under GST:

  • An applicant can file the application for Advance Ruling under Form GST ARA 01 to the Advance Ruling Authority by paying the government fees of Rs. 5,000 each under CGST and SGST Act( Total Rs. 10,000)
  • An applicant can file an appeal against the Advance Ruling already pronounced by the Authority to Appellate Authority through GST FORM ARA 02 by paying the government fees of Rs. 10,000 each under CGST and SGST Act (Total Rs. 20,000).
  • A concerned officer or jurisdictional officer can file an appeal against the Advance Ruling already pronounced by the Authority to Appellate Authority through GST FORM ARA 03 without any government fees.

11. Currently, the application for Advance Ruling is filed manually instead of online application on common portal because of unavailability of the requisite forms on the common portal. But after some time online application of advance ruling on the common portal will be enabled.

(Author can be reached at info@raagconsultants.com)

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