CHAPTER XVII

ADVANCE RULING
Commentary :

The object of advance ruling is to enable a person to have clarity of tax dimensions in respect
to a new business and venture, thereby eliminating unwanted differences and litigations in
future. Unlike other statutes, the provisions not only provide for advance ruling authority, but
also for an appellate authority for advance ruling.

95. DEFINITIONS

In this Chapter, unless the context otherwise requires,––

(a) “advance ruling” means a decision provided by the Authority or the Appellate authority
to an applicant on matters or on questions specified in sub-section (2) of section 97 or
sub-section (1) of section 100, in relation to the supply of goods or services or both
being undertaken or proposed to be undertaken by the applicant;

(b) “Appellate Authority” means the Appellate Authority for Advance Ruling referred to in
section 99;

(c) “applicant” means any person registered or desirous of obtaining registration under this
Act;

(d) “application” means an application made to the Authority under sub-section (1) of
section 97;

(e) “Authority” means the Authority for Advance Ruling referred to in section 96.

96. AUTHORITY FOR ADVANCE RULING

Subject to the provisions of this Chapter, for the purposes of this Act, the Authority for advance
ruling constituted under the provisions of a State Goods and Services Tax Act or Union Territory
Goods and Services Tax Act shall be deemed to be the Authority for advance ruling in respect
of that State or Union territory.

Commentary :

The corresponding section 96 of the SGST Act provides that the respective State Government
shall by notification constitute the State Authority for Advance Ruling. Alternatively it also
provides that the State Government may, on the recommendation of the Council, notify an
authority of a different State to act as the authority for the State. Sub-section (2) thereof
provides that the authority shall consist of one member from the officers from central tax and
one member from the officers from state tax, to be appointed by such Central Government
and State Government respectively.

Further section 15 of the UTGST Act provides that the Central Government shall by
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 notification constitute the Authority for Advance Ruling in respect to each Union Territory.
Alternatively it also provides that the Central Government may, on the recommendation of
the Council, notify an authority of a State or different Union Territory to act as the authority
for the Union Territory. Sub-section (2) thereof provides that the authority shall consist of
one member from the officers from central tax and one member from the officers from Union
Territory tax, to be appointed by the Central Government.

The Authorities for Advance Ruling so appointed under the SGST / UTGST Act are deemed to
be the Authority for Advance Ruling under the CGST Act.

97. APPLICATION FOR ADVANCE RULING

(1) An applicant desirous of obtaining an advance ruling under this Chapter may make an
application in such form and manner and accompanied by such fee as may be
prescribed, stating the question on which the advance ruling is sought.

(2) The question on which the advance ruling is sought under this Act, shall be in respect
of,––

(a) classification of any goods or services or both;

(b) applicability of a notification issued under the provisions of this Act;

(c) determination of time and value of supply of goods or services or both;

(d) admissibility of input tax credit of tax paid or deemed to have been paid;

(e) determination of the liability to pay tax on any goods or services or both;

(f) whether applicant is required to be registered;

(g) whether any particular thing done by the applicant with respect to any goods or
services or both amounts to or results in a supply of goods or services or both,
within the meaning of that term.

Commentary :

Advance ruling can be obtained only in respect to questions set forth in section 97 (2) above.

98. PROCEDURE ON RECEIPT OF APPLICATION

(1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to
the concerned officer and, if necessary, call upon him to furnish the relevant records:

Provided that where any records have been called for by the Authority in any case, such
records shall, as soon as possible, be returned to the said concerned officer.

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(2) The Authority may, after examining the application and the records called for and after
hearing the applicant or his authorised representative and the concerned officer or his
authorised representative, by order, either admit or reject the application:

Provided that the Authority shall not admit the application where the question raised in
the application is already pending or decided in any proceedings in the case of an
applicant under any of the provisions of this Act:

Provided further that no application shall be rejected under this sub-section unless an
opportunity of hearing has been given to the applicant:

Provided also that where the application is rejected, the reasons for such rejection shall
be specified in the order.

(3) A copy of every order made under sub-section (2) shall be sent to the applicant and to
the concerned officer.

(4) Where an application is admitted under sub-section (2), the Authority shall, after
examining such further material as may be placed before it by the applicant or obtained
by the Authority and after providing an opportunity of being heard to the applicant or
his authorised representative as well as to the concerned officer or his authorised
representative, pronounce its advance ruling on the question specified in the
application.

(5) Where the members of the Authority differ on any question on which the advance ruling
is sought, they shall state the point or points on which they differ and make a reference
to the Appellate Authority for hearing and decision on such question.

(6) The Authority shall pronounce its advance ruling in writing within ninety days from the
date of receipt of application.

(7) A copy of the advance ruling pronounced by the Authority duly signed by the members
and certified in such manner as may be prescribed shall be sent to the applicant, the
concerned officer and the jurisdictional officer after such pronouncement.

99. APPELLATE AUTHORITY FOR ADVANCE RULING.

Subject to the provisions of this Chapter, for the purposes of this Act, the Appellate Authority
for Advance Ruling constituted under the provisions of a State Goods and Services Tax Act or a
Union Territory Goods and Services Tax Act shall be deemed to be the Appellate Authority in
respect of that State or Union territory.

Commentary :

The corresponding section 99 of the SGST Act provides that the respective State Government
shall by notification constitute the State Appellate Authority for Advance Ruling. Such
Appellate Authority shall consist of the Chief Commissioner of Central Tax as designated by
the Board and the Commissioner of State Tax. Alternatively it also provides that the State
Government may, on the recommendation of the Council, notify any Appellate Authority of a
different State or Union Territory to act as the Appellate Authority for the State.

Further section 16 of the UTGST Act provides that the Central Government shall by
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 notification constitute the Appellate Authority for Advance Ruling in respect to each Union
Territory. Alternatively it also provides that the Central Government may, on the
recommendation of the Council, notify any Appellate Authority of a State or different Union
Territory to act as the Appellate Authority for the Union Territory. Sub-section (2) thereof
provides that such Appellate Authority shall consist of the Chief Commissioner of Central Tax
as designated by the Board and the Commissioner of Union Territory Tax having jurisdiction
over the applicant.

The Authorities for Advance Ruling so appointed under the SGST / UTGST Act are deemed to
be the Appellate Authority for Advance Ruling under the CGST Act.

100. APPEAL TO APPELLATE AUTHORITY.

(1) The concerned officer, the jurisdictional officer or an applicant aggrieved by any
advance ruling pronounced under sub-section (4) of section 98, may appeal to the
Appellate Authority.

(2) Every appeal under this section shall be filed within a period of thirty days from the date
on which the ruling sought to be appealed against is communicated to the concerned
officer, the jurisdictional officer and the applicant:

Provided that the Appellate Authority may, if it is satisfied that the appellant was
prevented by a sufficient cause from presenting the appeal within the said period of
thirty days, allow it to be presented within a further period not exceeding thirty days.

(3) Every appeal under this section shall be in such form, accompanied by such fee and
verified in such manner as may be prescribed.

101. ORDERS OF APPELLATE AUTHORITY

(1) The Appellate Authority may, after giving the parties to the appeal or reference an
opportunity of being heard, pass such order as it thinks fit, confirming or modifying the
ruling appealed against or referred to.

(2) The order referred to in sub-section (1) shall be passed within a period of ninety days
from the date of filing of the appeal under section 100 or a reference under sub-section
(5) of section 98.

(3) Where the members of the Appellate Authority differ on any point or points referred to
in appeal or reference, it shall be deemed that no advance ruling can be issued in
respect of the question under the appeal or reference.

(4) A copy of the advance ruling pronounced by the Appellate Authority duly signed by the
Members and certified in such manner as may be prescribed shall be sent to
the applicant, the concerned officer, the jurisdictional officer and to the Authority after
such pronouncement.

102. RECTIFICATION OF ADVANCE RULING.

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The Authority or the Appellate Authority may amend any order passed by it under section 98 or
section 101, so as to rectify any error apparent on the face of the record, if such error is
noticed by the Authority or the Appellate Authority on its own accord, or is brought to its notice
by the concerned officer, the jurisdictional officer, the applicant or the appellant within a period
of six months from the date of the order:

Provided that no rectification which has the effect of enhancing the tax liability or reducing the
amount of admissible input tax credit shall be made unless the applicant or the appellant has
been given an opportunity of being heard.

103. APPLICABILITY OF ADVANCE RULING

(1) The advance ruling pronounced by the Authority or the Appellate Authority under this
Chapter shall be binding only—

(a) on the applicant who had sought it in respect of any matter referred to in sub-
section (2) of section 97 for advance ruling;

(a) on the concerned officer or the jurisdictional officer in respect of the applicant.

(2) The advance ruling referred to in sub-section (1) shall be binding unless the law, facts
or circumstances supporting the original advance ruling have changed.

Commentary :

The advance ruling pronounced by the authority or appellate authority shall be binding on the
applicant and on the jurisdictional officer of the applicant, unless the law, facts and
circumstances have changed.

104. ADVANCE RULING TO BE VOID IN CERTAIN CIRCUMSTANCES

(1) Where the Authority or the Appellate Authority finds that advance ruling pronounced by
it under sub-section (4) of section 98 or under sub-section (1) of section 101 has been
obtained by the applicant or the appellant by fraud or suppression of material facts or
misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and
thereupon all the provisions of this Act or the rules made thereunder shall apply to the
applicant or the appellant as if such advance ruling had never been made:

Provided that no order shall be passed under this sub-section unless an opportunity of
being heard has been given to the applicant or the appellant.

Explanation.––The period beginning with the date of such advance ruling and ending
with the date of order under this sub-section shall be excluded while computing the
period specified in sub-sections (2) and (10) of section 73 or sub-sections (2) and (10)
of section 74.

(2) A copy of the order made under sub-section (1) shall be sent to the applicant, the
concerned officer and the jurisdictional officer.

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105. POWERS OF AUTHORITY AND APPELLATE AUTHORITY

(1) The Authority or the Appellate Authority shall, for the purpose of exercising its powers
regarding—

(a) discovery and inspection;

(b) enforcing the attendance of any person and examining him on oath;

(c) issuing commissions and compelling production of books of account and other
records,

have all the powers of a civil court under the Code of Civil Procedure, 1908.

(2) The Authority or the Appellate Authority shall be deemed to be a civil court for the
purposes of section 195, but not for the purposes of Chapter XXVI of the Code of
Criminal Procedure, 1973, and every proceeding before the Authority or the Appellate
Authority shall be deemed to be a judicial proceedings within the meaning of sections
193 and 228, and for the purpose of section 196 of the Indian Penal Code.

106. PROCEDURE OF AUTHORITY AND APPELLATE AUTHORITY

The Authority or the Appellate Authority shall, subject to the provisions of this Chapter, have
power to regulate its own procedure.

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