{"id":20305,"date":"2023-04-05T16:58:07","date_gmt":"2023-04-05T11:28:07","guid":{"rendered":"https:\/\/gstguntur.com\/?p=20305"},"modified":"2023-05-10T17:09:58","modified_gmt":"2023-05-10T11:39:58","slug":"advance-ruling-ca-final-idt-study-material","status":"publish","type":"post","link":"https:\/\/gstguntur.com\/advance-ruling-ca-final-idt-study-material\/","title":{"rendered":"Advance Ruling \u2013 CA Final IDT Study Material"},"content":{"rendered":"

Advance Ruling \u2013 CA Final IDT Study Material<\/a> is designed strictly as per the latest syllabus and exam pattern.<\/p>\n

Advance Ruling \u2013 CA Final IDT Study Material<\/h2>\n

Question 1.
\nDiscuss briefly provisions of CGST Act, 2017 regarding questions for which advance ruling can be sought. [May 2018, Old\/MTP, Nov. 18, 4 Marks]
\nAnswer:
\nAs per section 97(2) of CGST Act, 2017, advance ruling can be sought for the following questions:-
\n(a) classification of any goods or services or both
\n(b) applicability of a notification issued under the CGST Act
\n(c) determination of time and value of supply of goods or services or both
\n(d) admissibility of input tax credit of tax paid or deemed to have been paid
\n(e) determination of the liability to pay tax on any goods or services or both
\n(f) whether applicant is required to be registered
\n(g) whether any particular activity with respect to any goods and\/or services, amounts to\/ results in a supply of goods and\/or services, within the meaning of that term.
\nNote: Any of the four points may be mentioned.<\/p>\n

Question 2.
\nBharghav Pesticides Ltd., a domestic company, intends to start a business in Kolkata, involving supply of certain goods, mostly meant for foreign buyers in China. There is some difficulty in the classification of the goods. Can the company seek advance ruling from the Authority for Advance Ruling formed under CGST Act, 2017 in respect of the issue of classification of goods? Can the company also seek ruling on issues involving place of supply? [CS Professional, June 2018, 5 Marks]
\nAnswer:
\nSolution.
\nAs per section 97(2) of CGST Act, 2017 :<\/p>\n

(i) The issue of clas-sification of goods
\nThe Company can seek the advance ruling for determining the classification of goods proposed to be supplied
\n(ii) On issues involving place of supply<\/p>\n

Determination of place of supply is not one of the specified questions matters on which advance ruling can be sought under Section 97(2). Further, Section 96 of the CGST Act, 2017 provides the AAR constituted under the provisions of a SGST\/UTGST Act, shall be deemed to be the AAR in respect of that State\/Union territory. Thus, company CANNOT seek advance ruling on issues involving place of supply.<\/p>\n

\"Advance<\/p>\n

Question 3.
\nBriefly explain the procedure to be followed by the Authority for Advance Ruling (AAR) on receipt of the application for Advance Ruling under section 98 of CGST Act, 2017. [Nov. 2018, 5 Marks]
\nAnswer:<\/p>\n\n\n\n\n\n\n\n\n\n\n
Calling for records<\/td>\nUpon receipt of an application, the AAR shall send a copy of applica\u00adtion to the officer in whose jurisdiction the applicant falls and call for all relevant record.<\/td>\n<\/tr>\n
Order of either ad\u00admitting or rejecting the application<\/td>\nThe AAR may then examine the application along with the records and may also hear the applicant. Thereafter he will pass an order either admitting or rejecting the application.<\/td>\n<\/tr>\n
Similar subject matter pending or decided<\/td>\nApplication for advance ruling will not be admitted in cases where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act.<\/td>\n<\/tr>\n
Speaking order in case of rejection<\/td>\nIf the applicant is rejected, it should be by way of a speaking order giving the reasons for rejection.<\/td>\n<\/tr>\n
Time period<\/td>\nIf the application is admitted, the AAR shall pronounce its ruling within 90 days of receipt of application.<\/td>\n<\/tr>\n
Opportunity of be\u00ading heard<\/td>\nBefore giving the ruling, AAR must hear the application or his autho\u00adrized representative as well as the jurisdictional officers of CGST \/ SGST.<\/td>\n<\/tr>\n
Difference of opin\u00adion in between the 2 members of AAR<\/td>\nIf there is a difference of opinion between the two members of AAR, they shall refer the point or points on which they differ to the AAAR for hearing the issue. If the members of AAAR are also unable to come to a common conclusion in regard to point(s) referred to them by AAR, then it shall be deemed that no advance ruling can be given in respect of the question on which difference persists at the level of AAAR.<\/td>\n<\/tr>\n
Copy of advance ruling<\/td>\nA copy of the Advance ruling duly signed by members and certified in prescribed manner shall be sent to the applicant, the concerned officer and the jurisdictional officer.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Question 4.
\nBriefly explain whether an appeal could be filed before the Appellate Authority against order of Authority for Advance Ruling (AAR), with reference to sections 100 and 101 of the CGST Act, 2017. [May 2019 Old, 4 Marks]
\nAnswer:
\nAppeal against order of AAR<\/p>\n

    \n
  • Yes, the concerned officer, jurisdictional officer or applicant aggrieved by any advance ruling<\/li>\n
  • may appeal to the Appellate Authority for Advance Ruling (AAAR)<\/li>\n
  • within 30 days [extendible by another 30 days]<\/li>\n
  • from the date on which such ruling is communicated to him<\/li>\n
  • in the prescribed form and manner.<\/li>\n<\/ul>\n

    Order by AAAR<\/p>\n

      \n
    • The AAAR must pass an order<\/li>\n
    • confirming or modifying the ruling appealed against<\/li>\n
    • within a period of 90 days of the filing of an appeal<\/li>\n
    • after hearing the parties to the appeal.<\/li>\n<\/ul>\n

      Copy of Order by AAAR<\/p>\n

        \n
      • A copy of the advance ruling pronounced by the AAAR is sent to\n
          \n
        • applicant<\/li>\n
        • concerned officer<\/li>\n
        • jurisdictional officer and<\/li>\n
        • to the Authority.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

          Note: If members of AAAR differ on any point referred to in appeal, it shall be deemed that no advance ruling can be issued in respect of the question under appeal.<\/p>\n

          \"Advance<\/p>\n

          Question 5.
          \nRanjan intends to start selling certain goods in Delhi. However, he is not able to determine the classification of the goods proposed to be supplied by him [as the classification of said goods has been contentious].
          \nRanjan\u2019s tax advisor has advised him to apply for the advance ruling in respect of said issue. He told Ranjan that the advance ruling would bring him certainty and transparency in respect of the said issue and would avoid litigation later. Ranjan agreed with his view, but has some apprehensions.<\/p>\n

          In view of the information given above, you are required to advise Ranjan with respect to following:<\/p>\n

          (i) The tax advisor asks Ranjan to get registered under GST law before applying for the advance ruling as only a registered person can apply for the same. Whether Ranjan needs to get registered? (2 Marks)<\/p>\n

          (ii) Can Ranjan seek advance ruling to determine the classification of the goods proposed to be supplied by him?<\/p>\n

          (iii) Sambhav – Ranjan\u2019s friend – is a supplier registered in Delhi. He is engaged in supply of the goods, which Ranjan proposes to supply at the same commercial level that Ranjan proposes to adopt.
          \nHe intends to apply the classification of the goods if decided in the advance ruling order to be obtained by Ranjan, to the goods supplied by him in Delhi. Whether Sambhav can do so? (3 Marks)<\/p>\n

          (iv) Ranjan is apprehensive that if at all advance ruling is permitted to be sought, he has to seek it every year. Whether Ranjan\u2019s apprehension is correct? (2 Marks)<\/p>\n

          (v) The tax advisor is of the view that the order of Authority for Advance Ruling (AAR) is final and is not appealable. Whether the tax advisor\u2019s view is correct? (2 Marks) [MTP, May 19]
          \nAnswer:<\/p>\n\n\n\n\n\n\n\n\n
          Question<\/td>\nAnswer<\/td>\nReason<\/td>\n<\/tr>\n
          (i) Registration under GST law before applying for the advance ruling<\/td>\nIt is not mandatory for a person seeking advance ruling to be registered.<\/td>\nAs per Section 95(c) of the CGST Act, 2017:- Advance ruling under GST can be sought by a registered person or a person desirous of obtaining registra\u00adtion under GST law.<\/td>\n<\/tr>\n
          (ii) Seeking advance ruling to deter\u00admine the classi\u00adfication<\/td>\nRanjan can seek the ad\u00advance ruling for determin\u00ading the classification of the goods proposed to be supplied by him.<\/td>\nSection 97(2) of the CGST Act,<\/p>\n

          2017 Advance ruling can be sought for, inter alia, determining the classifi\u00adcation of any goods or services or both.<\/td>\n<\/tr>\n

          (iii) Application of advance ruling by Sambhav on the basis of advance ruling obtained by Ranjan<\/td>\nSambhav will not be able to apply the classification of the goods that will be decided in the advance ruling order to be obtained by Ranjan, to the goods supplied by him in Delhi.<\/td>\nSection 103 of the CGST Act: – Provides that an advance ruling pronounced by AAR is binding only on the applicant who had sought it and on the concerned officer or the jurisdictional officer in respect of the applicant. This implies that an advance ruling is not applica\u00adble to similarly placed other taxable persons in the State. It is only limited to the person who has applied for an advance ruling.<\/td>\n<\/tr>\n
          (iv) Seeking of ad\u00advance ruling ev\u00adery year<\/td>\nOnce Ranjan has sought the advance ruling with respect to an eligible mat\u00adter\/question, it will be binding till the time the law, facts and circumstances supporting the original ad\u00advance ruling remain same.<\/td>\nSection 103(2) of the CGST Act, 2017:- The advance ruling shall be binding unless the law, facts or cir\u00adcumstances supporting the original advance ruling have changed.<\/td>\n<\/tr>\n
          (v) Appeal against the order of AAR<\/td>\nNo, the tax advisor’s view is not correct. The order of AAR is appealable.<\/td>\nAs per section 100 of the CGST Act, 2017:- If the applicant is aggrieved with the finding of the AAR, he can file an appeal with Appellate Authority for Advance Ruling (AAAR). Similarly, if the concerned\/jurisdictional officer of CGST\/SGST does not agree with the findings of AAR, he can also file an appeal with AAAR.<\/p>\n

          Such appeal must be filed within 30 days from the receipt of the advance ruling. The Appellate Authority may allow additional 30 days for filing the appeal, if it is satisfied that there was a sufficient cause for delay in presenting the appeal.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

          \"Advance<\/p>\n

          Question 6.
          \nWhat are the cases\/circumstances, when advance ruling will be void?
          \nAnswer:
          \nSection 104 states the circumstances under which the ruling would be considered as void and hence would lose its binding value.<\/p>\n

          If the Authorities (AAR and Appellate Authority) find that the advance ruling pronounced has been obtained by the applicant\/appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio.<\/p>\n

          Consequently, all the provisions of the CGST Act shall apply to the applicant as if such advance ruling had never been made (but excluding the period when advance ruling was given and up to the period when the order declaring it to be void is issued).<\/p>\n

          NOTES:<\/p>\n

            \n
          1. An order declaring advance ruling to be void can be passed only after hearing the applicant\/ appellant.<\/li>\n
          2. A copy of the order so made shall be sent to the applicant, the concerned officers and the jurisdictional officer.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

            Advance Ruling \u2013 CA Final IDT Study Material is designed strictly as per the latest syllabus and exam pattern. Advance Ruling \u2013 CA Final IDT Study Material Question 1. Discuss briefly provisions of CGST Act, 2017 regarding questions for which advance ruling can be sought. [May 2018, Old\/MTP, Nov. 18, 4 Marks] Answer: As per …<\/p>\n

            Advance Ruling \u2013 CA Final IDT Study Material<\/span> Read More »<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[169],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/20305"}],"collection":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/comments?post=20305"}],"version-history":[{"count":6,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/20305\/revisions"}],"predecessor-version":[{"id":24638,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/20305\/revisions\/24638"}],"wp:attachment":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/media?parent=20305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/categories?post=20305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/tags?post=20305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}