Application for Advance Ruling under GST
Obtaining an Advance Ruling under the Goods and Services Tax (GST) regime is a crucial step for taxpayers seeking clarity on specific matters outlined under sub-section (2) of section 97 or sub-section (1) of section 100 of the CGST Act, 2017. This ruling, provided by the duly constituted Authority for Advance Ruling (AAR), pertains to the supply of goods or services or both, whether in the planning stages or already executed.
A registered person or an entity in the process of obtaining registration can approach the AAR for a binding decision. Notably, the ruling issued by the AAR holds significance not only for the applicant but also for government authorities. It serves as a legal reference point for the contemplated or executed transactions.
Should the need arise to challenge the ruling, the applicant has the option to appeal before the Appellate Authority for Advance Ruling (AAAR).
Matters on which Advance Ruling can be Obtained
(b) Notification Nuances: Understand the application of notifications under the CGST Act.
(c) Time and Value Precision: Navigate the intricacies of determining the time and value of goods or services supply.
(d) Tax Credit Assurance: Ensure the admissibility of input tax credit, whether paid or deemed.
(e) Tax Liability Resolution: Get decisions on the tax liability associated with specific goods or services.
(f) Registration Requirements: Determine if registration is mandatory for your business.
(g) Supply Definition Clarity: Unravel whether your actions concerning goods or services constitute a supply.
Scope of Advance Ruling
The impact of an advance ruling, issued by AAR extends exclusively to the applicant seeking clarification. This implies that the ruling is binding solely on the applicant and the pertinent officer or jurisdictional officer linked to the applicant. It’s crucial to note that the influence of an advance ruling does not stretch to other businesses in similar circumstances. The ruling’s applicability is confined to the specific individual or entity that initiated the advance ruling process.
Duration of an Advance Ruling
The flexibility of the law prevails in determining the timeframe of an advance ruling’s applicability. Unlike a fixed duration, the ruling holds sway until there’s a transformation in the legal framework, facts, or circumstances underpinning the original decision.
However, it’s essential to note that the Authority for Advance Ruling (AAR) has the authority to deem an advance ruling as ab initio void. This occurs when it’s established that the ruling was secured through fraudulent means, suppression of material facts, or misrepresentation of facts by the applicant. In such instances, the CGST/SGST Act’s provisions apply retroactively, treating the advance ruling as if it never existed. The declaration of voidness can only be pronounced after affording the applicant a fair opportunity for a hearing.
Procedure for obtaining Advance Ruling
1. Online Application: Submit your application through FORM GST ARA-01 on the common portal. Accompany it with a nominal fee of Rs.5000, payable as per the guidelines in section 49. The digital signature or e-signature, as per the Information Technology Act, must authenticate the application and relevant documents.
2. Officer Notification: Upon application receipt, the Authority for Advance Ruling (AAR) notifies the officer within whose jurisdiction you fall and requests all pertinent records for review.
3. Examination and Hearing: The AAR delves into your application, scrutinizing records and may even hold a hearing with you. Following this, an order is issued either admitting or rejecting the application.
4. Admission Criteria: Notably, an application won’t be entertained if the raised question is already under consideration or decided in ongoing proceedings for the same applicant under CGST Act provisions.
5. Rejection Protocol: If rejection becomes inevitable, rest assured that the decision is preceded by a fair hearing. The rejection is conveyed through a detailed reason-backed order.
6. Timely Ruling: For admitted applications, the AAR commits to delivering a ruling within 90 days of receiving the application.
7. Inclusive Hearing: Before pronouncing the ruling, the AAR ensures a thorough hearing involving you or your authorized representative and the jurisdictional officers of CGST/SGST.
8. Resolution of Differences: In case of a divergence of opinions within the AAR, the matter is referred to the Appellate Authority for Advance Ruling (AAAR). If consensus remains elusive even at the AAAR level, no advance ruling is granted for the persisting question.
Filing of Application for Advance Ruling
In compliance with rules 104 and 106 of the CGST Rules, 2017, applicants are required to file for advance rulings through the common portal. However, recognizing the temporary unavailability of essential forms on the common portal, a strategic addition has been made through rule 107A, as per notification No. 55/2017-Central Tax dated 15.11.2017.
Rule 107A specifies that for any process or procedure outlined in Chapter XII, referring to electronic filing on the common portal encompasses both electronic and manual filing. This manual filing includes applications, intimations, replies, declarations, statements, or the issuance of notices, orders, or certificates, utilizing the Forms appended to the CGST Rules.
To facilitate this transitional phase, Circular no. 25/25/2017-GST, dated 21.12.2017, has been issued, delineating a comprehensive procedure for the manual filing of Advance Ruling applications. Until the advance ruling module is seamlessly integrated into the common portal, adhere to the prescribed conditions and procedures for the smooth manual filing and processing of your applications.
Manner of Application to the Authority for Advance Ruling
To seek an advance ruling under sub-section (1) of section 97 of the CGST Act and its corresponding rules, follow these user-friendly steps.
Complete the application in quadruplicate using FORM GST ARA-01, clearly stating the question prompting the advance ruling. Alongside the application, deposit a nominal fee of Rs. 5,000 online, adhering to the guidelines in section 49 of the CGST Act.
While the application process currently involves manual filing until the advance ruling module is integrated into the common portal, the fee deposition remains an online affair. To facilitate this, initiate the fee payment through “Generate User ID for Advance Ruling” under “User Services” on the common portal. After entering your email id and mobile number, an OTP will be sent to your email. Upon OTP submission, a temporary ID will be generated and sent to your declared email and mobile number.
Use this ID to conveniently pay the Rs. 5,000 fee for both CGST and the respective SGST Act. Download and print the generated challan, and submit it along with your application to the Authority for Advance Ruling.
File your application in the jurisdictional office of the State Authority for Advance Ruling, as applicable. If the space provided in the Forms proves insufficient, attach separate sheets. Remember to self-attest the application, its verification, annexures, and accompanying documents.
The contact details of all State Authority for Advance Ruling (AAR) offices can be found at http://www.gstcouncil.gov.in/sites/ default/files/Details-of-AAR-as-on_22-11-2017.pdf
Authority to Sign the Application
(a) Individuals: The individual applicant can sign, and if absent from India, an authorized person or guardian can act on their behalf.
(b) Hindu Undivided Family (HUF): The Karta is the signatory, or in their absence, any adult family member or the authorized signatory of the Karta.
(c) Companies: The Chief Executive Officer or the authorized signatory has the authority to sign on behalf of the company.
(d) Government Entities: An officer duly authorized within the government, governmental agency, or local authority can sign.
(e) Firms: Any non-minor partner or the authorized signatory of the firm can sign.
(f) Associations: A member, authorized signatory, or any person designated can sign on behalf of the association.
(g) Trusts: The trustee or any authorized signatory of the trust is eligible to sign.
(h) Other Entities: A person competent to act on behalf or someone authorized under section 48 of the CGST Act can sign.
To Access the FAQs on Advance Ruling CLICK HERE
To Read Article “Annual Return under GST” CLICK HERE
Also Read:
Exemption Under Section 11 Cannot be Granted When Trust Activities are Commercial by Nature- ITAT Chennai
Annual Return Under GST Act 2017: A Comprehensive Guide
