GST KNOWLEDGE SHARING: ADVANCE RULING UNDER GST

ADVANCE RULING UNDER GST

In the current times when it has been two months of GST regime, a number of situations which have come to fore where definitive clarifications are required and the law is not much of help. Also, there are unclear situations regarding which decisions were taken in the earlier regime having considerations which are not of relevant in the current regime. Thus, there is a need as well as in the form of a solution, Advance Ruling Authority has come into picture. A process note to obtain advance ruling as well as applicability of the ruling is discussed hereunder for reference.

  • An application for obtaining an advance ruling by virtue of section 97 shall be made on the common portal in FORM GST ARA-01 and shall be accompanied by a fee of five thousand rupees, in the manner prescribed under Rule 104 of the CGST Rules, 2017.
  • The question on which the advance ruling is sought, shall be in respect of,––
    • Classification of any goods or services or both;
    • Applicability of a notification issued under the provisions 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 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.
  • The Authority may, by virtue of section 98, after examining the application and the records called for and after hearing the applicant or his authorised representative and the concerned officer or his authorised representative, by order, either admit or reject the application.A copy of every order shall be sent to the applicant and to the concerned officer.
  • Where an application is admitted, 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 his authorised representative as well as to the concerned officer or his authorised representative, pronounce its advance ruling on the question specified in the application.
  • The Authority shall pronounce its advance ruling in writing within ninety days from the date of receipt of application.
  • An appeal against the advance ruling issued under section 98 shall be made by an applicant on the common portal in FORM GST ARA-02 in the manner prescribed under Rule 106 of CGST Rules, 2017 and shall be accompanied by fee of ten thousand rupees.
  • By virtue of Rule 106 of CGST Rules,2017, the verification contained in the appeal referred above, and all the relevant documents accompanying such appeal shall be signed,-
    • In the case of the concerned officer or jurisdictional officer, by an officer authorised in writing by such officer; and
    • In the case of an applicant, in the manner specified in Rule 26 of CGST Rules, 2017.
  • By virtue of section 101, the Appellate Authority may, after giving the parties to the appeal or reference an opportunity of being heard, pass such order as it thinks fit, confirming or modifying the ruling appealed against or referred to.
  • The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only—
    • On the applicant who had sought it in respect of any matter referred to in section 97 for advance ruling,
    • On the concerned officer or the jurisdictional officer in respect of the applicant
  • Where the Authority or the Appellate Authority finds that advance ruling pronounced by it, has been obtained by the applicant or 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. Provided that no order shall be passed unless an opportunity of being heard has been given to the applicant or the appellant.

TEAM GST LAW INDIA

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