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(1) An applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and manner and accompanied by such fee as may be prescribed, stating the question on which the advance ruling is sought.
(2) The question on which the advance ruling is sought under this Act, shall be in respect of,–
(a) classification of any goods or services or both;
(b) applicability of a notification issued under the provisions of this Act;
(c) determination of time and value of supply of goods or services or both;
(d) admissibility of input tax credit of tax paid or deemed to have been paid;
(e) determination of the liability to pay tax on any goods or services or both;
(f) whether applicant is required to be registered;
(g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.97.1 Introduction
This section specifies the questions on which an advance ruling can be sought by way of an application which may be in such form and manner duly accompanied with the fee as may be prescribed.
97.2 Analysis
(i) An applicant who seeks an advance ruling should make an application in the prescribed FORM GST ARA-1 together with a fee of Rs. 5000/- and should state the question on which such a ruling is sought.
(ii) The question raised is limited to the following:
Classification of goods and / or services or both; Applicability of notification issued under the Act.
determining the time and value of goods or services or both; Input credit admissibility of tax paid or deemed to be paid;
Determination of liability to tax on goods or services or both;
Registration requirement of an applicant;
Whether any particular thing done by the applicant amounts to or results in supply of goods or services or both.
97.3 Comparative review
The questions on which AAR can be sought is quite comprehensive as compared to the existing indirect tax regime.
Under the current laws, the applicant may withdraw the application within 30 days from the date of application. However, there is no such withdrawal provision under GST laws.
97.4 Related Provisions
Section / Rule / Form Description Remarks
Section 95(d) Application This section states that ‘application’ means an application made to the
Authority under section 97(1).
Section 95(c) Applicant Defines applicant as a person who is registered or is desirous of obtaining registration under the GST Act.
Section 95(a) Advance Ruling Defines ‘Advance Ruling’ as a decision on matters or questions specified in section 97(2) or section 100(1).
97.5 FAQs
Q1. Who can make an application to the AAR?
Ans. An applicant desirous of obtaining an advance ruling (whether registered or not) can make an application to AAR.
Q2. Can a question relating to classification of services or goods be referred to AAR?
Ans. Yes, a question on classification of services or goods can be referred to AAR.
Q3. Can the issue relating to admissibility of input credit be raised in an application for advance ruling?
Ans. Yes, an issue in relation to admissibility of input tax credit of tax paid or which is deemed to have been paid can be raised in an application for advance ruling.
Q4. Can the issue relating to notification having a bearing on tax rate, be raised before the AAR?
Ans. Yes, an issue relating to applicability of any notification issued under act can be raised before the AAR
Q5. Can the application made to the authority be withdrawn at any time?
Ans. It appears that there is no such provision under GST law..
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