What is an advanced ruling in GST?

What is an advance ruling?

You must have heard a lot about the advance rulings. Many times it gets viral in our whats app groups and posts. A particular advance ruling authority decided something. It just increases the creases on the forehead of many experts.what is an advance ruling in GST? What are the cases that can be covered by an advance ruling? who will be bound by an advance ruling? 

Its a right to see the legal standing of your actions before you do them. As per the CGST Act, an advanced ruling can be sought for the following issues. Section 97 provides for its scope.

(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 an 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 the 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.

In a recent judgment, it was held that advanced ruling can be sought on Place of supply also.

Binding of an advance ruling:

As per section 103 of CGST Act an advance ruling shall be binding on the following.

(1) The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only—

(a)      on the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ruling;

(b)      on the concerned officer or the jurisdictional officer in respect of the applicant.