What is an advance ruling under GST?

What does an advance ruling decide?

It decides the tax treatment of a supply the applicant is undertaking or proposes to undertake. It is not an appeal against a notice that has already been issued, and it is not a refund. Registration, when the question is whether registration is required, is on the GST registration page.

Which questions can be asked?

Section 97(2) lists the questions. A question outside this list is not admitted.

• Classification of goods or services.
• Applicability of a notification.
• Determination of time and value of supply.
• Admissibility of input tax credit, including the credit discussed on the input tax credit page.
• Determination of the liability to pay tax.
• Whether the applicant is required to be registered.
• Whether a particular thing done by the applicant amounts to a supply.

How is the application filed?

GST ARA-01 goes to the Authority for Advance Ruling of the state where the applicant has the registration, or proposes to take it. The application states the question and the facts. The authority does not admit a question that is already pending, or already decided, in the applicant’s own case. Where it admits the application, it gives a hearing and pronounces the ruling in writing within 90 days.

Ninety days, on a section 97 question. The ruling is pronounced within 90 days of the application being received.

Who is bound by the ruling?

Section 103 binds the applicant and the concerned officer in respect of that applicant. It does not bind another taxpayer with a similar supply. The applicant or the concerned officer may appeal to the Appellate Authority for Advance Ruling within 30 days. The appellate order binds the same people.

Frequently asked questions

Four questions cover who may apply, the fee, a refused question, and the appeal.