WFYI logo

Understanding Advance Ruling Procedures Under CGST Rules: Chapter 12

This article clarifies the provisions of Chapter 12 of the CGST Rules concerning Advance Ruling. It details the appointment process for members of the Advance Ruling Authority and outlines the procedures for applying for an advance ruling, including associated fees and signing protocols. The document also explains the steps for filing an appeal with the Appellate Authority for Advance Ruling and the distribution process for its final decisions.

📖 2 min read read🏷️ Advance Ruling

Understanding Advance Ruling Procedures Under CGST Rules: Chapter 12

This document explains Chapter 12 of the Central Goods and Services Tax (CGST) Rules, focusing on the provisions for Advance Ruling. The information is derived from the official CGST Rules document published on July 1, 2017.

Qualification and Appointment of Authority for Advance Ruling Members

Both the Central and State Governments are responsible for appointing members to the Authority for Advance Ruling, selecting officers at the rank of Joint Commissioner.

Application Process for Advance Ruling

To obtain an advance ruling as per Section 97(1) of the CGST Act, applicants must submit Form GST ARA-01 via the common portal. A fee of INR 5,000, payable according to Section 49, must accompany the application. All submitted documents, including the application and its verification, require signing as per Rule 26.

Certification of Advance Ruling Copies

Any member of the Authority for Advance Ruling can certify an advance ruling copy as a true reproduction of the original document.

Appeal Process to the Appellate Authority for Advance Ruling

Application by an Applicant

Applicants wishing to appeal an advance ruling issued under Section 98(6) must use Form GST ARA-02 on the common portal and pay a fee of INR 10,000, as detailed in Section 49.

Application by an Officer

Conversely, the concerned or jurisdictional officer, as defined in Section 100, can file an appeal using Form GST ARA-03 on the common portal without any fee.

Signing Requirements for Appeals

All appeal documents, including the verification, must be signed. For officers, an authorized representative must sign, while applicants must follow the signing procedures outlined in Rule 26.

Certification and Distribution of Appellate Authority Rulings

Copies of advance rulings issued by the Appellate Authority for Advance Ruling, once properly signed by its members, are to be distributed to various parties. These include the applicant and the appellant, the relevant Central and State/Union Territory tax officers, the jurisdictional Central and State/Union Territory tax officers, and the primary Authority, all in compliance with Section 101(4) of the Act.

Frequently Asked Questions

What is an Advance Ruling in GST?
An Advance Ruling in GST is a decision provided by the Authority for Advance Ruling to an applicant on questions related to the supply of goods or services under the GST law, helping to ensure certainty in tax matters.
Who can apply for an Advance Ruling under GST?
Any registered person or even a person desirous of obtaining registration can apply for an Advance Ruling in India regarding a proposed transaction or a transaction already undertaken.
What are the benefits of obtaining an Advance Ruling?
Obtaining an Advance Ruling provides certainty for taxpayers regarding their tax liability, reduces litigation, avoids costly and time-consuming disputes, and offers transparent and inexpensive tax advice.
How long does it take to get an Advance Ruling?
While the law intends for advance rulings to be processed expeditiously, the actual time taken can vary. Generally, the Authority aims to pronounce a ruling within 90 days of receiving the application.
Is an Advance Ruling binding on the applicant and tax authorities?
Yes, an Advance Ruling is binding on the applicant who sought it and on the concerned officer or the jurisdictional officer in respect of the applicant. It remains binding unless there is a change in law or facts.