The scope of an advance ruling is defined by Section 97(2) of the CGST Act. Not every question can be referred for an advance ruling. Understanding the permissible questions is essential for a successful application.
This article explains what can and cannot be referred.
Questions That Can Be Referred
Under Section 97(2), advance ruling can be sought on:
- Classification of goods or services.
- Applicability of a notification.
- Time and value of supply.
- Input tax credit eligibility.
- Registration requirements.
- Liability to pay tax on a transaction.
Questions That Cannot Be Referred
- Questions involving determination of facts (as opposed to law).
- Questions where the applicant has already been subjected to proceedings.
- Questions that are not related to the applicant's own transactions.
- Questions on matters already decided by a court or tribunal.
Practical Considerations
- Frame questions precisely and clearly.
- Provide all relevant facts and documents.
- Avoid questions that require the AAR to determine disputed facts.
- Consider whether the question is likely to be challenged on maintainability.
Conclusion
Advance rulings are valuable for obtaining certainty on complex GST issues. However, the questions must fall within the scope of Section 97(2). Professional assistance in framing questions can improve the chances of a favorable ruling.
At Anuj Desai & Associates, we provide expert assistance in drafting advance ruling applications. Our team can help you frame the right questions and prepare a strong application.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.