Advance Ruling is a mechanism provided under the Central Goods and Services Tax (CGST) Act, 2017 and Integrated Goods and Services Tax (IGST) Act, 2017 for obtaining a ruling on any question of law or fact related to the supply of goods or services, or the classification of goods or services or both.
The Advance Ruling is an official opinion given by the authority appointed by the government on the request of the applicant, who is either a registered person or a person intending to register under GST.
The authority for Advance Ruling can be the Central Board of Indirect Taxes and Customs (CBIC) or State Tax Board, and the ruling is binding on the applicant, the concerned jurisdictional GST officer, and the GST Appellate Authority.
The objective of the Advance Ruling is to provide clarity and certainty to the taxpayers regarding the interpretation and application of the GST laws, to avoid any disputes and litigation in the future.
The application for Advance Ruling can be made by any registered person or a person intending to register under GST, on payment of the prescribed fees. The application must contain the details of the question or issue on which the ruling is sought, the relevant facts and circumstances, and the interpretation of law or facts as understood by the applicant.
The authority for Advance Ruling will examine the application, call for additional information if required, and after considering all the relevant factors, will provide a ruling within a specified time period. The ruling will be binding on the applicant and the concerned jurisdictional GST officer, and it can be appealed before the GST Appellate Authority if the applicant or the concerned officer is not satisfied with the ruling.
To apply for an Advance Ruling under the CGST/IGST Act, 2017, the applicant must follow these steps:
1. Prepare the application: The application for Advance Ruling must be made in the prescribed Form GST ARA-01. The application must contain the facts of the case, the questions on which the Advance Ruling is sought, and the applicant's interpretation of the law.
2. Submit the application: The application must be submitted to the Authority for Advance Ruling in the state or union territory where the registered person is located. The application must be submitted along with the prescribed fee.
3. Acknowledgment of application: The Authority for Advance Ruling will issue an acknowledgment of the application within seven working days from the date of submission of the application.
4. Hearing: The Authority for Advance Ruling will give the applicant an opportunity of being heard before passing the ruling. The hearing will be conducted on a date fixed by the authority.
5. Issuance of ruling: The authority for Advance Ruling must issue the ruling within 90 days of the receipt of the application. The ruling must be in writing and must contain a clear answer to the questions raised in the application.
6. Communication of ruling: The ruling must be communicated to the applicant and the concerned jurisdictional officer. The ruling will be binding only on the applicant who sought the ruling, the concerned jurisdictional GST officer, and the GST Appellate Authority.
7. Appeal: If the applicant or the concerned jurisdictional officer is not satisfied with the ruling, they can appeal against the ruling before the GST Appellate Authority.
As per the provisions of the CGST/IGST Act, 2017, the Authority for Advance Ruling must issue the ruling within 90 days of the receipt of the application. If the authority fails to issue the ruling within the prescribed time limit, it is deemed that no Advance Ruling can be issued in respect of the question raised in the application.
However, in certain circumstances, the Authority for Advance Ruling may require additional information or documents from the applicant or may adjourn the hearing, in which case the time limit for issuing the ruling may be extended by a maximum of 30 days. If the ruling is not issued within the extended time limit, it is deemed that no Advance Ruling can be issued in respect of the question raised in the application.
Here are some frequently asked questions (FAQs) related to Advance Ruling under the CGST/IGST Act, 2017:
A: Any registered person or a person intending to register under GST can apply for Advance Ruling on any question of law or fact related to the supply of goods or services, or the classification of goods or services or both.
A: No. Once an Advance Ruling has been issued on a particular question, the same question cannot be raised again by the same applicant or any related person for a period of three years.
A: No. The Advance Ruling is binding only on the applicant who sought the ruling, the concerned jurisdictional GST officer, and the GST Appellate Authority. The Advance Ruling is not binding on any other taxpayer or jurisdictional officer.
A: The authority for Advance Ruling is required to issue the ruling within ninety days of the receipt of the application.
A: Yes. The applicant can withdraw the application for Advance Ruling before the authority for Advance Ruling issues the ruling.
A: Yes. The authority for Advance Ruling can rectify any mistake apparent from the record within six months from the date of the ruling.
A: Yes. The Advance Ruling can be appealed before the GST Appellate Authority if the applicant or the concerned jurisdictional officer is not satisfied with the ruling.
A: Yes. The authority for Advance Ruling can revoke the ruling if it is later found that the ruling was obtained by fraud, suppression of material facts, or misrepresentation of facts.
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