GST – GST FAQ 3rd Edition – December, 2018 – 17 – 17. Advance Ruling Q 1. What is the meaning of Advance Ruling? Ans. An 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 100(1) of CGST/SGST Act as the case may be, in relation to the supply of goods and/or services proposed to be undertaken or being undertaken by the applicant. (section 95 of CGST/SGST Law and section 12 of UTGST law) Authority for Advance Rulings(AAR) are appointed under the respective SGST/UTGST Act(s) and the same are deemed to be the Authority for advance ruling under CGST Act also in respect of that State or Union territory. Q 2. Which are the questions for which advance ruling can be sought? Ans. Advance Ruling can be sought for the following questions: (a) classification of any goods or services or both; (b) applicability of a notification issued under provisions of the GST Act(s); (c) determination of ti
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uling expeditiously in transparent and inexpensive manner. Q 5. What will be the composition of Authority for advance rulings (AAR) under GST? Ans. Authority for advance ruling (AAR) shall comprise one member CGST and one member SGST/UTGST. They will be appointed by the Central and State government respectively. Q 6. Is it necessary for a person seeking advance ruling to be registered? Ans. No, any person registered under the GST Act(s) or desirous of obtaining registration can be an applicant. (Section 95(b)) Q 7. At what time an application for advance ruling be made? Ans. An applicant can apply for advance ruling even before taking up a transaction (proposed supply of goods or services) or in respect of a supply which is being undertaken. The only restriction is that the question being raised is already not pending or decided in any proceedings in the case of applicant. Q 8. What is the fees for filing an application before AAR and AAAR? Ans. A fee of ₹ 10000/- (Five thousand
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. Q 11. How many AAR and AAAR are constituted under GST? Ans. There is one AAR and AAAR constituted for each State. Details of addresses, contact details along with emails of AAR are available at- http://www.gstcouncil.gov.in/sites/default/files/Details%20of%20AAR%2030-11-18.pdf. Similarly, the details of AAAR are available at- http://www.gstcouncil.gov.in/sites/default/files/AAAR-ason-14-12-2018.pdf. Q 12. To whom will the Advance Ruling be applicable? Ans. The advance rulings are given in personem and not in rem, that is, not to the whole world and therefore, rulings cannot apply to other similar cases. Section 103 provides that an advance ruling pronounced by AAR or AAAR shall be binding only on the applicant who sought it in respect of any matter referred to in 97 (2) and on the jurisdictional tax authority of the applicant. This clearly means that an advance ruling is not applicable to similarly placed taxable persons in the State. It is only limited to the person who has applied
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d by the applicant by fraud or suppression of material facts or misrepresentation of facts. In such a situation, all the provisions of the GST Act(s) shall apply to the applicant as if such advance ruling had never been made (but excluding the period when advance ruling was given and up to the period when the order declaring it to be void is issued). An order declaring advance ruling to be void can be passed only after hearing the applicant. Q 16. What is the procedure for obtaining Advance Ruling? Ans. Section 97 and 98 deals with procedure for obtaining advance ruling. The applicant desirous of obtaining advance ruling should make application to AAR in form GST ARA-01. The format of the form and the detailed procedure for making application is prescribed in the CGST Rules. Section 98 provides the procedure for dealing with the application for advance ruling. The AAR shall send a copy of application to the officer in whose jurisdiction the applicant falls and call for all relevant rec
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horized representative as well as the jurisdictional officers of CGST/SGST/UTGST. Q 19. What happens if there is a difference of opinion amongst members of AAR? Ans. If there is difference of opinion between the two members of AAR, they shall refer the point or points on which they differ to the AAAR for hearing the issue. If the members of AAAR are also unable to come to a common conclusion in regard to the point(s) referred to them by AAR, then it shall be deemed that no advance ruling can be given in respect of the question on which difference persists at the level of AAAR. Q 20. What are the provisions for appeals against order of AAR? Ans. The provisions of appeal before AAAR are dealt in section 100 and 101 of CGST/SGST Act or section 14 of the UTGST Act. If the applicant is aggrieved with the finding of the AAR, he can file an appeal with AAAR. Similarly, if the concerned or jurisdictional officer of CGST/SGST/UTGST does not agree with the finding of AAR, he can also file an app
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. The CGST /SGST Act do not provide for any appeal against the ruling of Appellate Authority for Advance Rulings. Thus no further appeals lie and the ruling shall be binding on the applicant as well as the jurisdictional officer in respect of applicant. However, Writ Jurisdiction may lie before Hon ble High Court or the Supreme Court. Q 22. Can the AAR & AAAR order for rectification of mistakes in the ruling? Ans. Yes, AAR and AAAR have power to amend their order to rectify any mistake apparent from the record within a period of six months from the date of the order. Such mistake may be noticed by the authority on its own accord or may be brought to its notice by the applicant or the concerned or the jurisdictional CGST/SGST officer. If a rectification has the effect of enhancing the tax liability or reducing the quantum of input tax credit, the applicant or the appellant must be heard before the order is passed. (Section 102) Q 23. Where can one find the orders passed by AARs and
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