{"id":5640,"date":"2019-02-23T15:45:42","date_gmt":"2019-02-23T10:15:42","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=5640"},"modified":"2021-05-26T01:20:10","modified_gmt":"2021-05-25T19:50:10","slug":"gst-advance-rulling","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/gst-advance-rulling\/","title":{"rendered":"Overview on GST Advance Rulling"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d764461a31b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d764461a31b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/gst-advance-rulling\/#What_is_Advance_Ruling\" title=\"What is Advance Ruling:\">What is Advance Ruling:<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/gst-advance-rulling\/#%E2%80%9CApplicant%E2%80%9D_means_any_person_registered_or_desirous_of_obtaining_registration\" title=\"\u201cApplicant\u201d means any person registered or desirous of obtaining registration.\">\u201cApplicant\u201d means any person registered or desirous of obtaining registration.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/gst-advance-rulling\/#Why_is_advance_ruling_under_GST_necessary\" title=\"Why is advance ruling under GST necessary:\">Why is advance ruling under GST necessary:<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/gst-advance-rulling\/#When_can_one_request_for_GST_Advance_Ruling\" title=\"When can one request for GST Advance Ruling:\">When can one request for GST Advance Ruling:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/gst-advance-rulling\/#Process_of_Advance_Ruling_under_GST\" title=\"Process of Advance Ruling under GST\">Process of Advance Ruling under GST<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/gst-advance-rulling\/#Process_of_Advance_Ruling_under_GST-2\" title=\"Process of Advance Ruling under GST\">Process of Advance Ruling under GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/gst-advance-rulling\/#Forms\" title=\"Forms\">Forms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/gst-advance-rulling\/#The_decision_of_the_Authority\" title=\"The decision of the Authority\">The decision of the Authority<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/gst-advance-rulling\/#Will_all_applications_be_allowed\" title=\"Will all applications be allowed:\">Will all applications be allowed:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/gst-advance-rulling\/#When_will_the_authority_give_their_decision\" title=\"When will the authority give their decision:\">When will the authority give their decision:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/gst-advance-rulling\/#On_whom_will_the_advance_ruling_apply\" title=\"On whom will the advance ruling apply:\">On whom will the advance ruling apply:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/gst-advance-rulling\/#Appeal_to_the_Appellate_Authority\" title=\"Appeal to the Appellate Authority\">Appeal to the Appellate Authority<\/a><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><a style=\"font-size: 16px;\" href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/advance-ruling.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8600\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/advance-ruling.jpg\" alt=\"www.carajput.com; Advance ruling\" width=\"830\" height=\"415\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/advance-ruling.jpg 700w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/advance-ruling-300x150.jpg 300w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/a><\/h2>\n<p>www.carajput.com; Advance ruling<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"What_is_Advance_Ruling\"><\/span><span style=\"text-decoration: underline; color: #000080;\">What is Advance Ruling:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The advance ruling\u201d 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 <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">CGST Act<\/a>, in relation to the supply of goods or services or both proposed to be undertaken or being undertaken by the applicant.<\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"%E2%80%9CApplicant%E2%80%9D_means_any_person_registered_or_desirous_of_obtaining_registration\"><\/span><span style=\"color: #ff0000;\">\u201cApplicant\u201d means any person registered or desirous of obtaining registration.<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Why_is_advance_ruling_under_GST_necessary\"><\/span><span style=\"color: #000080;\"><span style=\"text-decoration: underline;\">Why is advance ruling under GST necessary<\/span>:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The objective of any advance ruling, including under GST is to-<\/p>\n<ol style=\"text-align: justify;\">\n<li>Provide certainty for tax liability in advance in relation to a future activity to be undertaken by the applicant.<\/li>\n<li>Attract Foreign Direct Investment (FDI) \u2013 By clarifying taxation and showing a clear picture of the future tax liability of the FDI. The clarity and clean taxation will attract non-residents who do not want to get involved in messy tax disputes.<\/li>\n<li>Reduce litigation and costly legal disputes.<\/li>\n<li>Give decisions in a timely, transparent, and inexpensive manner.<\/li>\n<li>Pronounce ruling expeditiously in a transparent and reasonable manner;<\/li>\n<li>Seeking advance ruling does not include any costs.<\/li>\n<li>Opportunity for a personal hearing can be granted to the applicant.<\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">Significance of Advance Ruling<\/span><\/strong><\/span><\/p>\n<figure id=\"attachment_12384\" aria-describedby=\"caption-attachment-12384\" style=\"width: 827px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/Advance-Ruling-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12384\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/Advance-Ruling-1.jpg\" alt=\"Advance Ruling\" width=\"827\" height=\"433\" \/><\/a><figcaption id=\"caption-attachment-12384\" class=\"wp-caption-text\">Advance Ruling<\/figcaption><\/figure>\n<ul style=\"text-align: justify;\">\n<li>Helps the applicant in planning his activities which are liable for payment of <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">GST<\/a>, well in advance.<\/li>\n<li>Determining the tax liability well in advance.<\/li>\n<li>Binding on the applicant as well as Government authorities.<\/li>\n<li>Avoiding long-drawn and expensive litigation at a later date.<\/li>\n<li>Seeking an advance ruling is inexpensive and the procedure is simple and expeditious.<\/li>\n<li>Certainty and transparency to a taxpayer with respect to an issue which may potentially cause a dispute with the tax administration.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">Constitution of \u2018Authority for Advance Ruling:<\/span><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong>CGST Act <\/strong>\u2013 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.<\/p>\n<p style=\"text-align: justify;\"><strong>SGST Act <\/strong>&#8211; 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.<\/p>\n<p style=\"text-align: justify;\"><strong>UTGST Act <\/strong>&#8211; 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\u00a0 Authority located in any State or any other Union territory to act as the Authority for the purposes of this Act.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>The Authority shall consist of-<\/strong><\/span><\/p>\n<p>(i) one member from amongst the officers of central tax to be appointed by the Central Government; and<\/p>\n<p>(ii) One member from amongst the officers of State tax to be appointed by the State Government.<\/p>\n<ul>\n<li style=\"text-align: justify;\">The qualifications, the method of appointment of the members and the terms and conditions of their services shall be such as may be prescribed.<\/li>\n<li style=\"text-align: justify;\">The Central Government and the State Government shall appoint an officer of the rank of Joint Commissioner as members of the Authority of Advance Ruling.<\/li>\n<li>Each State &amp; UT will have its own Advance Ruling Authority.<\/li>\n<li>The Authority will comprise one member CGST and one member SGST.<\/li>\n<li>Such members will be of designation Joint Commissioner.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">Application for the Advance ruling \u2013 Sec 97<\/span><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Advance Ruling can be sought for the following questions:<\/p>\n<ul style=\"text-align: justify;\">\n<li>Classification of goods or services or both;<\/li>\n<li>Applicability of a notification;<\/li>\n<li>Determination of time and value of supply of goods or services or both;<\/li>\n<li>Admissibility of Input Tax Credit;<\/li>\n<li>Determination of the liability to pay tax on any goods or services or both;<\/li>\n<li>Whether the applicant is required to be registered;<\/li>\n<li>Whether any particular thing done by the applicant qualifies as \u2018supply\u2019 within the meaning of the term<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">The procedure of Filing Application<\/span><\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li>An applicant desirous of obtaining an Advance Ruling may make an application in such form and manner and accompanied by such fee as may be prescribed.<\/li>\n<li>An application for obtaining an advance ruling shall be made on the common portal in FORM GST ARA-01https:\/\/carajput.com\/gst\/gst-consultancy.php and shall be accompanied by a fee of five thousand rupees, to be deposited in the manner specified in Section 49.<\/li>\n<li>Payment of fees can be made only using electronic cash ledger. Electronic credit ledger cannot be used for the payment fee.<\/li>\n<\/ul>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"When_can_one_request_for_GST_Advance_Ruling\"><\/span><span style=\"text-decoration: underline; color: #000080;\">When can one request for GST Advance Ruling:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">Any taxpayer can request for an advance ruling when he is uncertain of the provisions. Advance tax ruling is applicable on \u2013<br \/>\n(a) Classification of any goods and\/or services under the Act<br \/>\n(b) Applicability of a notification which affects the rate of tax<br \/>\n(c) Determination of time and value of the supply of goods\/services<br \/>\n(d) Whether input tax credit paid (or deemed to be paid) will be allowed<br \/>\n(e) Determination of the liability to pay tax on any goods\/services<br \/>\n(f) Whether the applicant has to be registered under GST<br \/>\n(g) Whether any particular thing done by the applicant regarding goods\/services will result in a supply.<\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Process_of_Advance_Ruling_under_GST\"><\/span><span style=\"text-decoration: underline; color: #000080;\">Process of Advance Ruling under GST<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">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).<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Process_of_Advance_Ruling_under_GST-2\"><\/span><strong><em><span style=\"color: #ff0000;\">Process of Advance Ruling under GST<\/span><\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Forms\"><\/span><span style=\"text-decoration: underline; color: #000080;\">Forms<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Application for the Advance ruling has to be made in <span style=\"text-decoration: underline;\"><a href=\"https:\/\/drive.google.com\/file\/d\/1Ym1IDrMWQzv_7StH2VEfQsQ3bVZ174sS\/view?usp=sharing\">FORM GST ARA-01<\/a>\u00a0<\/span>along with Rs. 5,000.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"The_decision_of_the_Authority\"><\/span><span style=\"text-decoration: underline; color: #000080;\">The decision of the Authority<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The Authority can by order, either admit or reject the application.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Will_all_applications_be_allowed\"><\/span><span style=\"text-decoration: underline; color: #000080;\">Will all applications be allowed:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The Authority will NOT admit the application when-<br \/>\n(b) The same matter has already been decided in an earlier case\u00a0for the applicant<br \/>\n(c) The same matter is already pending in any proceedings\u00a0for the applicant<\/p>\n<p style=\"text-align: justify;\">Applications will be rejected only after giving an opportunity of being heard.\u00a0Reasons for rejection shall be given in writing.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"When_will_the_authority_give_their_decision\"><\/span><span style=\"text-decoration: underline; color: #000080;\">When will the authority give their decision:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">An advance ruling decisions will be given within 90 days from the application.<\/p>\n<p style=\"text-align: justify;\">If the members of the Authority differ in opinion on any point, they will refer the point to the Appellate Authority.<\/p>\n<p style=\"text-align: justify;\"><em>Advance Ruling will have prospective effect only.<\/em><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"On_whom_will_the_advance_ruling_apply\"><\/span><span style=\"color: #000080;\"><span style=\"text-decoration: underline;\">On whom will the advance ruling apply<\/span>:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The advance ruling will be binding only \u2013<br \/>\n(a) On the applicant<br \/>\n(b) On the jurisdictional tax authorities in respect of the applicant.<\/p>\n<p style=\"text-align: justify;\">If the law, facts of the original advance ruling change then the advance ruling will not apply.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Appeal_to_the_Appellate_Authority\"><\/span><span style=\"text-decoration: underline; color: #000080;\">Appeal to the Appellate Authority<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">If the applicant aggrieved by the advance ruling he can appeal to the\u00a0Appellate Authority.<\/p>\n<p><strong>You may also like the following Blogs:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/blog\/gstn-enable-details-to-be-auto-populated-in-e-invoice-into-gstr-1\/\">GSTR enable details to be auto-populated in E-invoice GSTR-1<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/blocking-the-e-way-bill-creation-system-if-fails-to-file-gstr-3b-gstn\/\">Blocking the E-way bill creation system if fails to file GSTR-3B<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/learn\/prevent-common-errors-when-filing-with-gstr1.html\">common mistake is done while filing GSTR-1<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/learn\/einvoices-details-are-autopopulated-in-the-respective-gstr1-tables.html\">E-invoice details are auto-populated in the respective GSTR-1<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/gst-late-fee-capped-at-rs-500-for-each-gstr-3b-return-and-waives-off-late-fee-on-late-gst-return-filing\/\">GSTR-3 return late fees and wavier off late fees on late GST return filing<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/\">Key takeaways about GSTR-4 Annual composition Scheme<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/\">Extension of the due date of GSTR-1<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/gst-annual-return-gstr-9\/\">Annual Return of Gst GSTR-9<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>www.carajput.com; Advance ruling What is Advance Ruling: The advance ruling\u201d 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 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[1497,7018,7012,7016],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5640"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=5640"}],"version-history":[{"count":7,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5640\/revisions"}],"predecessor-version":[{"id":12385,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5640\/revisions\/12385"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=5640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=5640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=5640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}