Advance Ruling Under GST Law With Case Laws

Under the Goods and Services Tax (GST) regime, the Advance Ruling Mechanism is introduced to provide clarity and certainty to taxpayers on the interpretation of GST laws. Advance Ruling is defined under GST as a written decision given by the Authority or the Appellate Authority to an applicant on matters related to the supply of goods or services or both. The Advance Ruling Mechanism is a dispute resolution mechanism that enables taxpayers to get clarity on the interpretation of the provisions of GST law. In this article, we will discuss the concept of advance ruling under the GST law with case laws.

What is Advance Ruling Under GST Law?

Advance Ruling under GST law is a legal provision that allows taxpayers to get clarity on the interpretation of GST laws. It is a mechanism for dispute resolution, which is designed to provide certainty and clarity to taxpayers. The Advance Ruling Mechanism is introduced to avoid litigation and provide clarity to taxpayers on the interpretation of GST laws. The advance ruling enables taxpayers to know in advance the tax liability related to a particular transaction, which helps them to plan their business activities accordingly. Under GST, advance ruling is provided by the Authority for Advance Ruling (AAR) and the Appellate Authority for Advance Ruling (AAAR).

Who Can Apply for Advance Ruling?

Any registered person, a person who has applied for registration, or a non-resident taxable person can apply for Advance Ruling under GST law. The application for Advance Ruling can be made on matters related to the supply of goods or services or both. It is important to note that the Advance Ruling Mechanism is designed to provide clarity and certainty to taxpayers and is not intended to be used for a hypothetical situation or a hypothetical transaction.

Procedure for Applying for Advance Ruling

The process for applying for Advance Ruling under GST law is as follows:

The applicant has to file an application in Form GST ARA-01, along with the prescribed fee, with the Authority for Advance Ruling (AAR) of the respective state or union territory, where the applicant is registered or intends to register.
The application should contain a statement of facts and the questions on which the advance ruling is sought.
The applicant has to furnish all the relevant documents and information, which will help the Authority for Advance Ruling (AAR) to arrive at a decision.
The Authority for Advance Ruling (AAR) will examine the application and may ask for further information, if required.
The Authority for Advance Ruling (AAR) will issue a written ruling, which will contain the findings and the reasons for the decision.
If the applicant is not satisfied with the ruling of the Authority for Advance Ruling (AAR), he can file an appeal with the Appellate Authority for Advance Ruling (AAAR) within 30 days from the date of receipt of the ruling.
The Appellate Authority for Advance Ruling (AAAR) will examine the appeal and may ask for further information, if required.
The Appellate Authority for Advance Ruling (AAAR) will issue a written ruling, which will contain the findings and the reasons for the decision.

Case Laws on Advance Ruling under GST Law

Here are some of the case laws related to Advance Ruling under GST law:

Case 1: M/s. Clay Craft India Pvt. Ltd

M/s. Clay Craft India Pvt. Ltd, a manufacturer of tableware, had filed an application for Advance Ruling under GST law. The company had sought a ruling on the classification of its products under the GST regime. The Authority for Advance Ruling (AAR) had ruled that the products of M/s. Clay Craft India Pvt. Ltd fall under the category of "Tableware and Kitchenware of plastics" and attract a GST rate of 18%.

Case 2: M/s. Santhoshimathaa Cold Storage Pvt. Ltd

M/s. Santhoshimathaa Cold Storage Pvt. Ltd had filed an application for Advance Ruling under GST law. The company had sought a ruling on the applicability of GST on the services provided by it. The Authority for Advance Ruling (AAR) had ruled that the services provided by M/s. Santhoshimathaa Cold Storage Pvt. Ltd fall under the category of "Storage and warehousing services" and attract a GST rate of 18%.

Case 3: M/s. Alcon Consulting Engineers (India) Pvt. Ltd

M/s. Alcon Consulting Engineers (India) Pvt. Ltd had filed an application for Advance Ruling under GST law. The company had sought a ruling on the classification of its services under the GST regime. The Authority for Advance Ruling (AAR) had ruled that the services provided by M/s. Alcon Consulting Engineers (India) Pvt. Ltd fall under the category of "Consulting Engineer Services" and attract a GST rate of 18%.

Conclusion

The Advance Ruling Mechanism is introduced under GST to provide clarity and certainty to taxpayers on the interpretation of GST laws. The mechanism is a dispute resolution mechanism that enables taxpayers to get clarity on the interpretation of the provisions of GST law. Any registered person, a person who has applied for registration, or a non-resident taxable person can apply for Advance Ruling under GST law. The application for Advance Ruling can be made on matters related to the supply of goods or services or both. The Advance Ruling Mechanism is designed to provide clarity and certainty to taxpayers and is not intended to be used for a hypothetical situation or a hypothetical transaction.