Standardised PPT on GST Indirect Taxes Committee The Institute of Chartered Accountants of India

Disclaimer and Copy right This presentation has been prepared to provide a standard ‘user presentation’. The views expressed in this presentation are those of Speaker(s). The Institute of Chartered Accountants of India may not necessarily subscribe to the views expressed by the speaker(s). The information cited in this presentation has been drawn from various sources. While every efforts have been made to keep the information cited in this presentation error free, the Institute or any office do not take the responsibility for any typographical or clerical error which may have crept in while compiling the information provided in this presentation. Further, the information provided in this presentation are subject to the provisions contained under different acts and members are advised to refer to those relevant provision also. For clarifications write to us at idtc@icai.in © The Institute of Chartered Accountants of India This standardised PPT may be used by any person with due acknowledgement to the Indirect Taxes Committee of ICAI. © Indirect Taxes Committee, ICAI

Advance Ruling © Indirect Taxes Committee, ICAI

Meaning of the term “Advance Ruling” Section 95(a) of the CGST Act Advance ruling” means a written decision provided by the Authority or, as the case may be, the Appellate Authority to an applicant on matters or on questions specified in Section 97(2) or Section 100(1) of the CGST Act, as the case may be, in relation to the supply of goods or services or both proposed to be undertaken or being undertaken by the applicant. It is also worth highlighting here that under the erstwhile Service Tax Law, advance ruling could be sought only for a service proposed to be provided by the applicant © Indirect Taxes Committee, ICAI

Application for Advance ruling – Sec 97 Advance Ruling can be sought for the following questions: Classification of goods or services or both; Applicability of a Notification; Determination of time and value of supply of goods or services or both; Admissibility of Input Tax Credit; Determination of tax liability; Clarification on registration; Classification of a supply as goods or services or both. © Indirect Taxes Committee, ICAI

Procedure of Receipt of Application– Sec 98 AAR (Each State) 1 CGST + 1 SGST Member Member 2 Shall send copy, may call records 1 Prescribed form and fees w.r.t. specified 7 questions only. 3 Accept or Reject Prescribed Officer Applicant Reject after opportunity of Hearing Copy * Not to admit if already before / decided by any Adjudicating or Appellate Authority. © Indirect Taxes Committee, ICAI

Procedure for Advance ruling – Sec 98 Application admitted AAR 3 If members differs, refer to 1 Opportunity of Hearing Appellate Authority of Advance Ruling 1 Prescribed Officer / Jurisdictional CGST / SGST Officer Applicant 2 Advance ruling on Question in Application within 90days Copy No application shall be admitted if the same is already pending or decided in any proceedings under any provisions of GST © Indirect Taxes Committee, ICAI

Practical Aspects for Obtaining Advance Ruling S. No. Particulars Details Source 1 Prescribed form and Mode of filing GST ARA-01 to be filed online on GST Common Portal Rule 104 of the CGST Rules , 2017 2 Amount of fee to be paid Rs. 5,000/- under the CGST Rules, 2017. Further, Rs. 5,000/- shall be paid under the SGST Rules, 2017. Consequently, effective fee shall be Rs. 10,000/- 3 Mode of payment of fee Internet banking or credit/debit cards or NEFT or RTGS Section 49 of the CGST Act © Indirect Taxes Committee, ICAI

Appellate Authority for Advance ruling – Sec 100 & 101 AAR/ Aggrieved Applicant Within 30 days of AAR ruling * Fees of Rs. 10000 1 AAAR Designated Chief Commissioner 1 Commissioner Central Tax + SGST/UGST Opportunity of Being Heard Within 90 days 2 Advance Ruling confirmed or modified Or Decide no ruling can be issued * Period may further be extended by 30 days. -Applicant -CGST / SGST / UTGST Officer -AAR 3 Copy to © Indirect Taxes Committee, ICAI

Appeal to and Order of Appellate Authority – Sec 100 and101 AAR Ruling -within 30 days of Communication of Ruling* -in Prescribed form with prescribed fees Applicant Prescribed Officer or CGST/SGST Officer AAAR Within 90 days Hearing + Decision OR *Note: Appellate Authority may allow further period of 30 days Decide no ruling can be issued © Indirect Taxes Committee, ICAI

Practical Aspects Relating to Appeal to the Appellate Authority for Advance Ruling S. No. Particulars Details Source 1 Prescribed form for filing an appeal to the Appellate Authority by an applicant GST ARA-02 to be filed online on GST Common Portal Rule 106(1) of the CGST Rules, 2017 2 Amount of fee to be paid for filing an appeal Rs.10,000/- to be paid under CGST Rules, 2017. Further, Rs. 10,000 is to paid under SGST Rules, 2017. Thus, effectively fee of Rs. 20,000/- is to be paid. 3 Mode of payment of fee Internet banking or credit/debit cards or NEFT or RTGS Section 49 of the CGST Act, 2017 4. Prescribed form for filling an appeal to Appellate Authority by an officer [Departmental Appeal] FORM ARA-03 to be filled on GST portal with no fee. Rule 106(2) of the CGST Rules, 2017 © Indirect Taxes Committee, ICAI

Rectification of Advance ruling – Sec 102 AAR or AAAR may rectify the ruling brought to its notice For mistake apparent from record. Either on own motion or if brought to notice by prescribed/ jurisdictional CGST/ SGST/ UTGST officer or applicant Opportunity of being heard if prejudicial to Applicant/ Appellant Rectify mistake apparent from record within 6 months of date of order Note:- Not to amend substantive part of the order © Indirect Taxes Committee, ICAI

Applicability of Advance ruling – Sec 103 Binding on Applicant seeking AR as per section 97(2) Jurisdictional tax Authority UNLESS Law, Facts, Circumstances have changed © Indirect Taxes Committee, ICAI

Ruling void ab initio – Sec 104 If AAR / AAAR finds ruling obtained by the applicant /appellant by fraud / misrepresentation / suppression of facts. By order declare advance ruling as void-ab-initio, after giving an opportunity of being heard Note:- All provisions of the Act shall apply after excluding period in between date of ruling and this order © Indirect Taxes Committee, ICAI

Power / Procedure of AAR/ AAAR– Sec 105 and 106 Deemed to be civil court; Proceedings treated as judicial proceedings; Power to enforce attendance, examining on oath, issuing commission, compelling production of books / records; Power to regulate its own procedure. © Indirect Taxes Committee, ICAI

Thank You For any Clarification, Please Contact Indirect Taxes Committee of ICAI Email: idtc@icai.in, Website: www.idtc.icai.org © Indirect Taxes Committee, ICAI