Advance Ruling

Question 1

AAR can give binding ruling to ___________

Answer 1

an applicant who is registered taxable person or liable to be registered

Question 2

Advance ruling given by AAR can be appealed before

Answer 2

Appellate Authority for Advance Ruling (AAAR)

Question 3

what are the objectives for setting up mechanism of Advance Ruling?

Answer 3

1. Provide certainty in tax liability in advance in relation to activity proposed to be undertaken by applicant
2. Attract FDI
3. Reduce litigation
4. Pronounce ruling expeditiously in transparent and inexpensive manner

Question 4

Provisions of advance ruling are contained in Chapter ______ and Sections _______

Answer 4

a) Chapter XVII

b) Sections 95 to 106 of CGST Act

Question 5

Sec. 97

Answer 5

Questions for which advance ruling can be sought

Question 6

Define advance ruling

Answer 6

Sec 95(a)

Means decision provided by Authority or the appellate authority to an applicant on master or matters or on question specified in Sec.97(2) or Sec.100(1) in relation to supply of goods or services or both being undertaken or proposed to be undertaken by the applicant

Question 7

Questions for which AR can be sought ? - Sec 97

Answer 7

1) Classification of any G/S/B
2) Applicability of notification issued under GST act
3) Determination of time and value of supply of G/S/B
4) admissibility of ITC of tax paid or deemed to have been paid
5) Determination of liability to pay tax on any G/S/B
6) Whether applicant is required to be registered?
7) Whether any particular thing done by the applicant wrt to any G/S/B results or amounts in supply

Question 8

Sec. 96

Answer 8

Authority for AR

Question 9

Sec. 99

Answer 9

Appellate Authority for AR

Question 10

AAR and AAAR - Sec. 96 and 99

Answer 10

AAR and AAAR: constituted under provisions of SGST/UTGST deemed so.
Ruling given by AAR/AAAR will be applicable only within the jurisdiction of concerned state or UT.

CG shall appoint officers not below the rank of Joint Commissioner as member of AAR

Determination of place of supply cannot be raised with AAR/AAAR

Question 11

CG shall appoint officers not below the rank of __________ as member of AAR

Answer 11

Joint Commissioner

Question 12

Determination of place of supply can be raised with AAR/AAAR. true/ false ?

Answer 12

False

Question 13

Sec. 98

Answer 13

Procedure for obtaining Advance ruling

Question 14

Procedure for obtaining Advance Ruling?

Answer 14

Sec. 98

• • Applicant to make application to AAR in prescribed form
• • AAR will send copy of application to officer in whose jurisdiction the applicant falls and call for relevant records
• • AAR then examine application with records and also hear the applicant
• • AAR will pass an order either admitting/ Rejecting application

Question 15

when will application for AR not be admitted ?

Answer 15

(Sec. 98) in cases where the question raised in application is already pending or decided in proceedings of an applicant under any provisions of the Act

Question 16

If the application for AR is rejected, it should be by way of what ?

Answer 16

(Sec. 98)Speaking order giving reasons for rejection

Question 17

If application is admitted, AAR shall pronounce its ruling within _________ .

Answer 17

(Sec. 98)90 days of receipt of application

Question 18

Before giving the ruling, AAR must hear whom?

Answer 18

a) the applicant
b) His authorised representative
c) Jurisdictional officers of CGST/SGST
(Sec. 98)

Question 19

What if there is a difference of opinion between two members of AAR

Answer 19

(Sec. 98) they shall refer the point(s) on which they differ to the AAAR for hearing. If the members of AAAR are also unable to come to a common conclusion then it shall deemed that no Advance Ruling can be given in respect of the question on which the difference persists at the level of AAAR

Question 20

A copy of the AR duly signed by members and certified shall be sent to _______

Answer 20

1) Applicant
2) Concerned officer
3) Jurisdictional officer

Question 21

Sec. 100 and Sec.101

Answer 21

Appeals against order of AAR to Appellate Authority

Question 22

Appeals against order of AAR to Appellate Authority

Answer 22

Sec 100 and Sec.101

a) applicant / concerned officer/ jurisdictional officer can file an appeal with AAAR
b) Appeal must be filed within 30 days from receipt of AR.AAAR may allow additional 30 days- if there is sufficient cause for delay
c) Appeal is prescribed form and verified
d) Appellate Authority must pass order within 90 days of filing appeal after hearing both parties
e) If members of AAAR differ on any point, deemed- no AR issued
f) AAAR can confirm or modify the ruling appealed against
g) Copy sent to applicant, CO, JO, Authority

Question 23

Appeal must be filed within _________-

Answer 23

30 days from receipt of AR

Question 24

AAAR may allow additional __________ for filing an appeal for Advance ruling

Answer 24

30 days

Question 25

AAAR cannot confirm or modify the ruling appealed against. True / False ?

Answer 25

False

Question 26

AAAR must pass order within________

Answer 26

90 days of filing appeal after hearing both parties

Question 27

Sec.102

Answer 27

Rectification of mistakes

Question 28

Rectification of Mistakes by AAR or AAAR. Explain ?

Answer 28

S.102 - power to amend their order to rectify any mistake apparent from record within 6 months from date of order - noticed by authority on its own accord or brought to notice by applicant/CO/JO - If rectification has effect of enhancing the tax liability or reducing the quantum of ITC , applicant must be heard before the order is passed

Question 29

AAR/ AAAR has the power to amend their order to rectify any mistake apparent from record within _________ u/s

Answer 29

a) 6 months from date of order | b) S.102

Question 30

Applicability of Advance Ruling

Answer 30

S.103 - binding only on applicant and CO /JO of applicant - not applicable to similarly placed other taxable persons in the State - Limited to persons applied for AR - Law does not provide for fixed time period for which ruling shall apply . - It shall be binding till the time period when the law, facts or circumstances of original advance ruling have not changed

Question 31

S.103

Answer 31

Applicability of Advance Ruling

Question 32

S.104

Answer 32

Advance Ruling Void in certain circumstances

Question 33

Circumstances when Advance Ruling is void/ nullified /lose its binding value?

Answer 33

S.104 - If AAR/AAAR finds that AR pronouncing has been obtained by the applicant by fraud/ suppression of material facts or misrepresentation of facts: By order declare void ab-initio - Consequently , all CGST provisions shall apply as if AR never made applicable ( excluding period AR given and upto the period of order declaring it void) - Order passed after hearing applicant/appellant - Copy made available to applicant/CO/JO

Question 34

Sec.105 and 106

Answer 34

Powers and procedures of AAR and AAAR

Question 35

Powers and procedures of AAR and AAAR

Answer 35

Sec.105 and 106 =>powers of civil court under Code of Civil Procedure for a) discovery and inspection b) enforcing the attendance of person and examine him on oath c) compelling production of book and accounts / other records =>deemed civil court for Sec.195 of Code of Criminal Procedure,1973 => any proceeding before authority deemed Judicial proceeding u.s 193 and 228 and for Sec.196 of IPC => power to regulate their own procedure