AUTHORITY FOR

ADVANCE RULING
ADVANCE RULING – SECTION 95
• Advance Ruling under GST means seeking clarifications from GST
authority on certain tax matters before starting the proposed
activity. This helps to reduce costly litigation.
• An advance ruling is a written decision given by the tax authority to
an applicant on queries related to the supply of goods/services.
• 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.
• Advance ruling to be issued within 90 days.
• Advance ruling shall be binding on concerned officer or
jurisdictional officer in case of applicant and only on the applicant
• Advance ruling to continue unless there is a change in law or facts.
ISSUES TO SEEK ADVANCE RULING
• Classification of goods or services
• Applicability of any notification
• Determination of time and value of supply of goods or
services or both
• Determination of admissibility of ITC paid or deemed to
have been paid
• Determination of the liability to pay tax on any goods or
services or both
• Determination on whether applicant is required to be
registered
• Determination on whether any particular thing by the
applicant results in supply
AUTHORITY FOR ADVANCE RULING (SECTION
96)
For the purpose of the Act, the Authority for Advance Ruling
or AAR constituted under the provisions of SGST or
UTGST shall be deemed to be, the AAR in respect of that
State or Union Territory.
• CG and the State Government shall appoint an officer of
the rank of JC as member of AAR
• State Appointed Authority shall be deemed to be the
Authority for AAR in respect of that State/UT
Powers of AAR – SECTION 105
• To exercise the powers of a Civil Court and to regulate its
own procedure
• To hear and determine all applications and petitions.
• To pass appropriate orders and To re-open the hearing of
any case for sufficient cause, before pronouncement of its
Order / Advance Ruling.
• To give directions for examination of any records and
submission of report and conduction of any technical,
scientific or market enquiry of any goods or services.
• To modify and amend the Advance Ruling.
• Rectification of order within a period of 6 months from the
date of the order
Application to AAR
• Application: Form GST ARA-1
• Signatory: Application and other relevant documents
should be signed by the Applicant.
• Withdrawal: Within 30 days from the date of application.
• Rejection of Application by AAR:
(a) If issues pending with some Authority,
(b) If question raised is same as already decided by a Court or
Tribunal. [Notice /Hearing the Applicant is must, before passing
an order. Rejection Order should state reasons thereof.
Procedure to be adopted by AAR – Section 98
• AAR to forward a copy of the application to the Commissioner.
• After examining the application &records, the application may
be either allowed or rejected.
• If the application is allowed, AAR shall examine such further
material placed before it or obtained by it, and it shall
pronounce its Advance Ruling on the question specified in the
application.
• The Advance Ruling shall be pronounced in writing within 90
days from the receipt of application.
• Copy of the Order / Advance Ruling shall be sent to the Applicant and
the Commissioner, the concerned officer of Central Tax and State /
Union Territory Tax,
• the jurisdictional officer of Central Tax and State / Union Territory Tax,
and the Authority
Appeal to Appellate Authority (Section 99]
Situation : The concerned officer, the jurisdictional officer
or an applicant aggrieved by any advance ruling by AAR,
may appeal to the Appellate Authority.
Constitution of Appellate Authority: Appellate Authority
for AR constituted under SGST / UTGST Act shall be
deemed to be the Appellate Authority in respect of that
State or Union territory.
ORDER OF APPELLATE AUTHORITY - SEC 101
• The Appellate Authority may, after giving the parties to the
appeal or reference an opportunity being heard, pass cuh
order (within 90 days from date of filing of appeal) as it
thinks, fit, confirming or modifying the ruling appealed
against or referred to
• 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.