Concept under GST: Advance Ruling

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GST Advance Ruling

GST Advance Ruling

Definition of Advance Ruling

 ‘Advance Ruling’ means a decision provide by the Authority or the Appellate Authority to an applicant on matters or on questions specified in section 97(2) of CGST Act 2017, in relation to the supply of goods and/or services proposed to be undertaken or being undertaken by the applicant.

Question specified in section 97(2) of CGST Act 2017 for which advance ruling can be sought

  • Classification of any goods or services or both.
  • Applicability of a notification issued under provisions of the CGST Act.
  • Determination of time and value of supply of goods or services or both.
  • Admissibility of input tax credit of tax paid or deemed to have been paid.
  • Determination of the liability to pay tax on any goods or services or both.
  • Whether applicant is required to be registered.
  • Whether any particular thing done by the applicant with respect to any goods or services amounts to or results in a supply of goods or services, within the meaning of that term.

Procedure for Advance Ruling

  • The applicant makes application for advance ruling to authority for advance ruling.
  • On receipt of application the authority shall call for relevant records.
  • Authority will than examine the records and may also hear the applicant. Thereafter he will either accept or reject the application.
  • If application is admitt than , authority for advance ruling will pronounce its ruling within 90 days of receipt of application.
  • And If the application is reject than reason should be given.
  • If the applicant is aggrieved by the order of authority for advance ruling than he can further appeal to appellate authority for advance ruling within 30 days. From the date of receipt of advance ruling.

Clarifications

  • Advance ruling authority is binding only on the applicant. And on the concerned officer or jurisdictional officer in respect of applicant. This means advance ruling is applicable on the person who applied for advance ruling.
  • If the advance ruling authorities find that advance ruling has been obtained by applicant by fraud or misrepresentation of facts than authorities may by order declare such ruling void ab –initio.
  • Advance ruling shall be binding only upto the period there is no change in law, facts, and circumstances on the basis of which advance ruling is provided.
  • Application for advance ruling will not be admit if the question raised in the application is already pending or decided in any proceedings in the case of applicant under any of the provisions of CGST Act.

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