What is ‘advance ruling’ ?
“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), as the case may be, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant – section 95(a) of CGST Act.
Application for advance ruling can be made in respect of supply ‘being undertaken’. Thus, a person can apply even in respect of activity he is already doing, though really that is not the idea of ‘Advance Ruling’.
Application should be made by applicant with fees, stating the question on which advance ruling is sought – section 97(1) of CGST Act.
Questions for which advance ruling can be sought – The question on which the advance ruling is sought shall be in respect of any of following [section 97(2) of CGST Act].
(a) classification of any goods or services or both under the Act.
(b) applicability of a notification issued under provisions of the Act having a bearing on the rate of tax.
(c) determination of time and value of the 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.