Goods and Service tax
Divyanagamani
2019MCO11
[Link] iv sem
What is “Advance Ruling” under GST:
•“Advance Ruling” defined under Section 95 (a) of CGST Act, 2017 as follows
“Advance Ruling” means a written decision provided by the Authority or, as the case may be, 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, as the case may be, in relation to the supply of goods or services or both being undertaken
or proposed to be undertaken by the applicant.
•Application for advance ruling can be made in respect of supply ‘being under taken’. Thus, a person can
apply even in respect of activity he is already doing.
•Application should be made by applicant with fees, stating the question on which advance ruling is sought.
Question for which Advance Ruling under GST can be sought:
•As per Section 97 (2) of the Goods and Service Tax Act, 2017 Advance Ruling can be sought on following
questions:
(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 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.
•The concerned officer, the jurisdictional officer or an applicant aggrieved by any advance ruling pronounced
under Section 98 (4) of CGST Act, 2017 may appeal to the Appellate Authority under Section 100 (1) of the
CGST Act, 2017.
Authority for Advance Ruling under GST:
•Section 96 of CGST Act, 2017 define The Authority for Advance Ruling as follows:
“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.”
•Authority for advance ruling will be constituted in each State/Union Territory. The Government shall appoint
officers, as members of the Authority for Advance Ruling, not below the rank of the Joint Commissioner as per
Rule 103 of CGST Rules, 2017.
•Procedure specified in Section 98 of CGST Act, 2017 to be followed by Authority for Advance Ruling.
Procedure for filing Application for Advance Ruling under GST:
•An Application for obtaining an advance ruling under Section 97 (1) of CGST Act shall be made on the common
portal in Form GST ARA-01 and shall be accompanied by a fee of Rs. 10,000 /- i.e. Rs. 5,000 /- under CGST
Act and Rs. 5,000 /- under SGST Act.
•Online Deposit of Fees on Common Portal.
•The application for advance ruling, the verification contained therein and all relevant documents accompanying
such application shall be signed.
•After submission of an application in form GST ARA-01, the authority may, after examining the application and
records called for and after hearing the applicant or his authorized representative and the concerned officer or
his authorized representative, by order, either admit or reject the application under Sec. 98 (2) of CGST Act.
•A copy of order made under Sec. 98 (2), for admit or reject of application, shall be sent to the applicant and the
concerned officer.
(a) Where an application is admitted:
◊ the authority shall pronounce its advance ruling on the question specified in the application.
◊ the Authority shall pronounce its advance ruling in writing within 90 days from the date of receipt of application
(b) Where an application is not admitted:
◊ 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
◊ No application shall be rejected unless an opportunity of hearing has been given to the applicant
◊ Where the application is rejected, the reasons for such rejection shall be specified in the order.
Procedure for payment of fees for application under GST
•In order to make the payment of fee for filing an application for Advance Ruling on the common portal, the
applicant has to fill his details using “Generate User ID for Advance Ruling” under “User Services”.
•After entering the email id and mobile number, a One Time Password (OTP) shall be sent to the email id.
•Upon submission of OTP, Systems shall generate a temporary ID and send it to the declared email and mobile
number of the applicant.
•The applicant can make the payment of the fee of Rs. 5,000/- each i.e. CGST Act and SGST Act respectively
on the basis of this ID.
•The applicant is then required to download Form GST ARA-01 and file the application with the Authority for
Advance Ruling.
Appeal to Appellate Authority:
•The Appellate Authority for Advance Ruling constituted under the provisions of SGST or UGST shall be
deemed to be the Appellate Authority in respect of that State or Union territory as per Section 99 of CGST
Act, 2017.
•As per Section 101 of CGST Act, 2017, 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.
•Every appeal shall be filed within a period of 30 days from the date on which the ruling sought to be
appealed against is communicated.
•The appellate authority may allow further period not exceeding 30 days if sufficient cause shown.
•An Appeal shall be made as follows:
• In Form GST ARA- 02 by an Applicant along with fees of Rs. 10,000/-.
• In Form GST ARA- 03 by the concerned officer or the jurisdictional officer without any fees.
•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.
•The order shall be passed within a period of 90 days from the date of filing of the appeal.
•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.
•As per Section 101 (4) of CGST Act read with and Rule 107 of CGST Rules, 2017, A copy of the advance
ruling pronounced by the Appellate Authority for Advance Ruling and duly signed by the Members shall be sent
to-
i. the applicant and the appellant;
ii. the concerned officer of central tax and State or Union territory tax;
iii. the jurisdictional officer of central tax and State or Union territory tax; and
iv. the Authority