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www.carajput.com; Advance ruling
The advance ruling” means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in Section 97(2) or Section 100(1) of the CGST Act, in relation to the supply of goods or services or both proposed to be undertaken or being undertaken by the applicant.
The objective of any advance ruling, including under GST is to-
Significance of Advance Ruling
Constitution of ‘Authority for Advance Ruling:
CGST Act – The Authority for Advance Ruling constituted under the provisions of the SGST Act or UTGST Act shall be deemed to be the Authority for Advance Ruling in respect of that State or Union Territory.
SGST Act – The State Government shall, by notification, constitute an Authority to be known as the Delhi State Authority for Advance Ruling. Provided that the Government may, on the recommendation of the Council, notify any Authority located in another State to act as the Authority for the State.
UTGST Act – The Central Government shall, by notification, constitute an Authority to be known as the (name of the Union territory) Authority for Advance Ruling: Provided that the Central Government may, on the recommendations of the Council, notify any Authority located in any State or any other Union territory to act as the Authority for the purposes of this Act.
The Authority shall consist of-
(i) one member from amongst the officers of central tax to be appointed by the Central Government; and
(ii) One member from amongst the officers of State tax to be appointed by the State Government.
Application for the Advance ruling – Sec 97
Advance Ruling can be sought for the following questions:
The procedure of Filing Application
Any taxpayer can request for an advance ruling when he is uncertain of the provisions. Advance tax ruling is applicable on –
(a) Classification of any goods and/or services under the Act
(b) Applicability of a notification which affects the rate of tax
(c) Determination of time and value of the supply of goods/services
(d) Whether input tax credit paid (or deemed to be paid) will be allowed
(e) Determination of the liability to pay tax on any goods/services
(f) Whether the applicant has to be registered under GST
(g) Whether any particular thing done by the applicant regarding goods/services will result in a supply.
An advance ruling is first sent to the Authority for Advance Ruling (Authority). Any person unhappy with the advance ruling can appeal to the Appellate Authority for Advance Ruling (Appellate Authority).
Application for the Advance ruling has to be made in FORM GST ARA-01 along with Rs. 5,000.
The Authority can by order, either admit or reject the application.
The Authority will NOT admit the application when-
(b) The same matter has already been decided in an earlier case for the applicant
(c) The same matter is already pending in any proceedings for the applicant
Applications will be rejected only after giving an opportunity of being heard. Reasons for rejection shall be given in writing.
An advance ruling decisions will be given within 90 days from the application.
If the members of the Authority differ in opinion on any point, they will refer the point to the Appellate Authority.
Advance Ruling will have prospective effect only.
The advance ruling will be binding only –
(a) On the applicant
(b) On the jurisdictional tax authorities in respect of the applicant.
If the law, facts of the original advance ruling change then the advance ruling will not apply.
If the applicant aggrieved by the advance ruling he can appeal to the Appellate Authority.
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