Advance Ruling under GST (Section 95 to 106)
'Advance ruling' is a written decision given by the tax authorities to an applicant on questions relating to applicability of GST on supply of their goods or services.
Sec. 96 - Authority for Advance Ruling constituted under the provision of SGST Act or UTGST Act shall be deemed to be the 'Authority for Advance Ruling' in respect of that state or UT.
Sec. 97(1) - Any person can make online application in Form GST ARA-1.
Fee for obtaining Advance ruling
A fee of Rs. of Rs. 5,000 has to be paid in the same manner as tax or other dues are paid.
Sec. 97(2) - Following are the matters for advance ruling:
- Classification for any goods or services or both;
- Applicability of a notification issued under the provision of this Act;
- Determination of time and value of supply of goods or services or both;
- Admissibility of input tax credit of tax paid or deemed to have been paid;
- Determination of the liability to pay tax on any goods or services or both;
- Whether applicant is required to be registered;
- Whether any particular thing done by the applicant with respect to goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.
Sec. 98 - Procedure on receipt of application
After examining the application and records and after hearing the applicant or his AR and concerned officer or his AR, the Authority will take the decision on the admission of application.
After admission, final hearing shall be provided to all concerned, and the Authority shall pronounce its decision on the question specified in the application.
This entire exercise shall be completed within 90 days from the date of receipt of the application.
Sec. 99 - Appellate Authority for Advance Ruling
Appellate Authority for Advance Ruling constituted under the provision of SGST Act or UTGST Act shall be deemed to be the 'Appellate Authority for Advance Ruling' in respect of that state or UT.
Sec. 100 - Appeal to Appellate Authority
It the applicant or concerned officer are not satisfied with any advance ruling, may appeal in the Form GST ARA-2 to the Appellate Authority within 30 days from the date of communication of advance ruling.
This period of 30 days may also be increased by another 30 days on showing the sufficient cause.
Fee for filing an appeal
A fee of Rs. of Rs. 10,000 has to be paid in the same manner as tax or other dues are paid.
Sec. 101 - Orders of Appellate Authority
The Appellate Authority within 90 days, may pass such order as it thinks fit, confirming or modifying the ruling appealed against or referred to after giving an opportunity of being heard is given to the parties concerned.
Sec. 102 - The order can also be rectified for the mistake apparent on the records.
However, an opportunity of being heard shall be given if it has the effect of enhancing the tax liability or reducing the amount of admissible ITC.
Sec. 103 - Binding effect of Advance Ruling
Advance ruling shall have binding effect only on:
- The applicant;
- The concerned officer;
- The jurisdictional officer in respect of the applicant.
The advance ruling shall be binding unless the law, facts or circumstances supporting the Advance Ruling have changed.
Sec. 104 - Advance Ruling shall be void ab-initio, if it has been obtained by fraud or suppression of material facts or misrepresentation of facts.
Sec. 105 -The Authority and Appellate Authority shall have all the powers of a civil court under Code of Civil Procedure, 1908.
The author is a practicing CA and is registered Insolvency Professional. He can also be reached at firstname.lastname@example.org