Contents

Relevant Definitions [Section 95] . . . . . . . . . . . . . . . . . . . 1

Questions for Which Advance Ruling Can Be Sought [Section 97(2)] 1
Matters Barred from Advance Ruling . . . . . . . . . . . . . . . . . 2
Constitution of AAR and AAAR [Sections 96 and 99] . . . . . . . 2
Procedure for Obtaining Advance Ruling [Section 98] . . . . . . . . 3
Appeal to Appellate Authority [Sections 100 and 101] . . . . . . . 3
Rectification of Mistakes [Section 102] . . . . . . . . . . . . . . . . 3
Applicability of Advance Ruling [Section 103] . . . . . . . . . . . . 4
Advance Ruling Void Ab Initio [Section 104] . . . . . . . . . . . . . 4
Powers and Procedure of AAR/AAAR [Sections 105 and 106] . . . 4
Comparison Table — AAR vs AAAR . . . . . . . . . . . . . . . . 5
Comparison Table — Advance Ruling vs Appeal to AAAR . . . . 6
Practical Problem — Ranjan’s Advance Ruling Scenario (Consoli-
dated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
National Appellate Authority for Advance Ruling — Finance
(No. 2) Act, 2019 Amendments (Not Yet Notified) . . . . . . 7
Exceptions & Provisos Summary Table . . . . . . . . . . . . . . . . 8

Relevant Definitions [Section 95]

• Advance Ruling: decision by [[Authority for Advance Ruling]]
(AAR) or [[Appellate Authority for Advance Ruling]] (AAAR) to
an applicant on matters/questions u/s 97(2) or 100(1), relating to
supply of goods/services being undertaken or proposed to be
undertaken [Section 95(a)]
• Applicant: any person registered or desirous of obtaining reg-
istration — registration is NOT mandatory to apply [Section 95(c)]
• Application: application made to Authority u/s 97(1) [Section 95(d)]
• Provisions of Advance Ruling under CGST Act extended to IGST Act
vide Section 20, IGST Act
• Links: [[Registration under GST]], [[Reverse Charge]] (both are Sec-
tion 97(2) questions)

Questions for Which Advance Ruling Can Be Sought [Section

97(2)]
• Classification of goods/services
• Applicability of a notification issued under CGST Act
• Determination of time and value of supply
• Admissibility of [[Input Tax Credit]] of tax paid/deemed paid
• Determination of liability to pay tax
• Whether applicant is required to be registered

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 • Whether a particular act amounts to or results in “supply”
Note: [[Place of Supply]] is NOT a matter on which advance ruling can
be sought — since AAR/AAAR are constituted under State/UT GST law,
their rulings apply only within that State/UT’s jurisdiction.

Matters Barred from Advance Ruling

Provision General Rule Exception(s)/Bar

Conditions Reference
Admission of AAR Application Applies to Section
application examines not both 98(2)
and ad- admitted if pending and
mits/rejects question decided
application already matters
pending or
already
decided in
any
proceeding
under the
Act, in the
applicant’s
case
Scope of Broad list of Determination AAR/AAAR Section 96,
questions 7 questions of place of are 99
u/s 97(2) supply State/UT-
allowed cannot be constituted
raised bodies, not
Central

Constitution of AAR and AAAR [Sections 96 and 99]

• AAR/AAAR constituted under State/UT GST Act, not the Central
Act — deemed to be AAR/AAAR under CGST Act also for that
State/UT
• Consequence: ruling binds only within the jurisdiction of the con-
cerned State/UT
• Members of AAR: officers not below rank of Joint Commissioner
[Rule 103]
• Links: [[National Appellate Authority for Advance Ruling]] (deals with
conflicting rulings across States — see amendments section below)

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Procedure for Obtaining Advance Ruling [Section 98]
• Application in prescribed form on common portal, fee �5,000 each for
CGST and SGST
• Application + verification + documents signed in prescribed manner
• AAR sends copy of application to concerned officer; may call for rele-
vant records (returned ASAP)
• AAR examines application/records, hears applicant, then admits or
rejects
• Rejection: must be a speaking order + opportunity of hearing given;
else invalid
• Copy of admission/rejection order sent to applicant and concerned
officer
• If admitted: ruling pronounced within 90 days of receipt of ap-
plication, after hearing applicant/representative and concerned
officer/representative
• Difference of opinion between the 2 members of AAR → referred
to AAAR; if AAAR members also cannot agree → deemed that no
advance ruling can be given on that question
• Signed, certified copy of ruling sent to applicant, concerned officer,
jurisdictional officer

Appeal to Appellate Authority [Sections 100 and 101]

• Aggrieved applicant or aggrieved concerned/jurisdictional officer
may appeal to AAAR
• Time limit: 30 days from receipt of AAR order; AAAR may condone
delay by a further 30 days on sufficient cause
• Appeal fee: �10,000 each under CGST and SGST — payable only by
applicant; no fee if officer appeals
• Signing: officer’s appeal signed by an officer authorised in writing;
applicant’s appeal signed in specified manner
• AAAR passes order within 90 days of filing of appeal, after hearing
both parties
• Difference of opinion among AAAR members on appeal → deemed no
advance ruling can be issued on that question
• AAAR may confirm or modify the ruling appealed against
• Signed, certified copy sent to applicant, concerned officer, jurisdic-
tional officer, and to the Authority (AAR)

Rectification of Mistakes [Section 102]

• AAR/AAAR may amend order to rectify a mistake apparent from
record within 6 months from date of order

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 • Mistake may be noticed suo motu or brought to notice by appli-
cant/concerned officer/jurisdictional officer
• Tricky Point: if rectification enhances tax liability or reduces
ITC, applicant must be heard before the order is passed — natural
justice safeguard applies only in the adverse-to-applicant direction

Applicability of Advance Ruling [Section 103]

• Binding only on: (a) the applicant, and (b) concerned/jurisdictional
officer in respect of that applicant
• Tricky Point: ruling is in personam, not in rem — NOT applicable
to other similarly placed taxable persons in the same State, even on
an identical question
• No fixed validity period prescribed by law — ruling binds as long
as the law, facts, or circumstances supporting it remain un-
changed

Advance Ruling Void Ab Initio [Section 104]

Aspect Provision
Ground for voidance Obtained by fraud, suppression of
material facts, or misrepresentation
of facts
Who declares void AAR or AAAR, by order
Pre-condition Order can be passed only after
hearing the applicant/appellant
Effect All provisions of CGST Act apply
to applicant as if the advance
ruling had never been made
Limitation exclusion Period between date of advance
ruling and date of the void order is
excluded while computing time
limits under Section 73(2)/(10),
74(2)/(10), or 74A(2)/(7)
Communication Copy sent to applicant, concerned
officers, jurisdictional officer

Powers and Procedure of AAR/AAAR [Sections 105 and 106]

• Vested with powers of a civil court under Code of Civil Procedure,
1908 for: discovery and inspection; enforcing attendance and examina-
tion on oath; issuing commissions; compelling production of books of
account/records

4
 • Deemed to be civil court for purposes of Section 195, CrPC 1973
— but NOT for Chapter XXVI, CrPC (offences against public justice
trial provisions)
• Proceedings deemed judicial proceedings under Sections 193 and
228, and for purposes of Section 196, IPC
• AAR/AAAR have power to regulate their own procedure, subject
to the Chapter’s provisions

Comparison Table — AAR vs AAAR

Common
Basis of Key Confusion
Concept A Concept B Distinction Difference Point
Authority Appellate Level AAR is Both
for Advance Authority first-level; constituted
Ruling for Advance AAAR hears under
(AAR) Ruling appeals State/UT
(AAAR) against Act, not
AAR’s order CGST Act
AAR AAAR Fee �5,000 �10,000
(CGST) + (CGST) +
�5,000 �10,000
(SGST) for (SGST) for
application appeal, only
if applicant
appeals
AAR AAAR Timeline Ruling Order within
within 90 90 days of
days of filing of
receipt of appeal
application
AAR AAAR Effect of 2-member AAAR
internal dis- difference → members’
agreement referred to difference →
AAAR deemed no
ruling can
be issued
(no further
appeal body
under
regular
scheme)

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Comparison Table — Advance Ruling vs Appeal to AAAR

Common
Basis of Key Confusion
Concept A Concept B Distinction Difference Point
Original Appeal Trigger Voluntary Filed only
Advance against application when
Ruling Ruling by applicant aggrieved by
(Section 98) (Sections AAR’s order
100–101)
Original Appeal Who can Only the Applicant or
Advance initiate applicant con-
Ruling cerned/jurisdictional
officer
Original Appeal Fee liability Always Nil if officer
Advance payable by files the
Ruling applicant appeal
Original Appeal Limitation No statutory Must be
Advance outer time filed within
Ruling limit on 30 days (+30
validity days
(Section 103) condonable)

Practical Problem — Ranjan’s Advance Ruling Scenario

(Consolidated)

Applicable Correct Remarks/Tricky

Step Issue Raised Provision Position Point
1 Must Section 95(c) Not Tricky
Ranjan be mandatory Point:
registered — a person registered
before “desirous of status is not
applying? obtaining a pre-
registration” condition
can also
apply
2 Must Section No fixed Ruling
advance 103(2) periodicity continues as
ruling be — binding long as
sought every until transaction
year? and facts are
law/facts/circumstances
change unchanged

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 Applicable Correct Remarks/Tricky
Step Issue Raised Provision Position Point
3 Is AAR’s Sections 100 Incorrect — Tax
order and 101 appealable advisor’s
final/non- to AAAR view is
appealable? within 30 wrong
days (+30
days
condonable)
by applicant
or officer
4 Can Section 103 No — ruling Tricky
Sambhav binds only Point:
(another the applicant applies in
supplier) (Ranjan) personam,
rely on and the con- not in rem,
Ranjan’s even for
cerned/jurisdictional
ruling for his officer qua identical
own Ranjan facts/goods
identical
goods?

National Appellate Authority for Advance Ruling — Finance

(No. 2) Act, 2019 Amendments (Not Yet Notified)
• Tricky Point: These amendments (new Sections 101A, 101B, 101C;
changes to Sections 95, 102, 103, 104, 105, 106) are enacted but not
yet effective — applicability for exams to be separately announced
by ICAI
• Purpose: resolve conflicting advance rulings given by AAARs of
two or more States/UTs on the same question, for distinct persons
(same PAN) under Section 25
• National Appellate Authority (NAAA) composition: President
(Supreme Court/High Court judge background) + Technical Member
(Centre) + Technical Member (State)
• Appeal to NAAA: by officer authorised by Commissioner, or by an ag-
grieved applicant (distinct person) — within 30 days (officer: 90 days)
of communication of the last of the conflicting rulings, condonable by
further 30 days
• NAAA order timeline: 90 days from filing of appeal — mirrors AAAR
timeline
• Once effective: NAAA’s decision will itself constitute an “advance
ruling”; ruling binds all distinct persons with the same PAN and their

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 concerned/jurisdictional officers
• Links: [[Distinct Persons under Section 25]], [[Conflicting Advance
Rulings]]

Exceptions & Provisos Summary Table

Conditions
for
Provision/Rule General Rule Exception(s) Exception Reference
Admission of AAR ad- Application Speaking Section
application mits/examines rejected if order + 98(2)
application question hearing
already given before
pend- rejection
ing/decided
under the
Act
Rectification AAR/AAAR Hearing Only when Section 102
of mistake can rectify mandatory if effect is
apparent rectification adverse to
errors suo enhances tax applicant
motu or on liability or
request, reduces ITC
within 6
months
Binding Binding only Ruling Only after Section 103,
nature of on applicant becomes hearing the 104
ruling and con- void ab appli-
initio if
cerned/jurisdictional cant/appellant
officer obtained by
fraud/suppression/misrepresentation
Civil court AAR/AAAR Not deemed Statutory Section 105
powers deemed civil civil court carve-out
court for for Chapter
Section 195, XXVI, CrPC
CrPC (public
justice
offences)
Appeal fee �10,000 each No fee if con- Applies only Section 100
to officer-
(CGST+SGST)cerned/jurisdictional
payable by officer files initiated
applicant appeal appeals
filing appeal