In our previous article on advance ruling, we discussed the fundamentals of advance rulings and also the Authority for Advance Ruling. during this article, we’ll continue with an appeal to the Appellate Authority and other aspects of the advanced ruling.

Table of contents

Process of Advance Ruling under GST

Forms

The decision of the Appellate Authority

Rectification of Advance Ruling

Applicability of Advance Ruling

Can the Advance Ruling become void?

Powers of the Authority and Appellate Authority

The procedure of the Authority and therefore the Appellate Authority

What Happens if the Taxable Person is Unhappy with the choice of the Appellate Authority?

Conclusion

Latest Updates

1st February 2021

Union Budget 2021: With relevancy orders received on detention and seizure of products and conveyance, 25% of the penalty must be procured making an application of appeals under section 107 of the CGST Act. The date of applicability is yet to be informed.

3rd April 2020

The deadline for completion or compliance has been extended to 30th June 2020, where the time limit/ date of expiry falls between the amount from 20th March 2020 to 29th June 2020. It includes the point in time to file an appeal before the appellate authority under the GST law or the judicature or the Supreme Court including the admission and processing of the appeal.

A new concept under GST Appealing against the Advance Ruling could be a new provision in GST. The previous tax regime didn’t have any scope for appeal against Advance Ruling to any tribunal. It may be only appealed against through a special dispensation to the Division Bench of the court. This process has been made simple by allowing pleas to the Appellate Authority under GST.

Appeal to the Appellate Authority for Advance Ruling under GST.

appeal to the appellate authority.

Process of Advance Ruling under GST.

Process of Advance Ruling under GST.

Who can appeal against the advanced ruling? The applicant or the officer aggrieved by any advance verdict can appeal to the Appellate Authority.

What is the limit for appeal?

An appeal against the advance ruling must be made within thirty days from the date of the advance ruling.

Forms

If the applicant is appealing against the choice of the advance ruling then he will apply in FORM GST ARA-02 and pay Rs. 10,000 fees.

If the appeal is created by a GST tax officer, then the application is FORM GST ARA-03. No fee is applicable.

The decision of the Appellate Authority

The Appellate Authority can verify or amend the ruling appealed against. Appellate Authority will give its judgment within ninety days from application. If the members of the Appellate Authority differ in opinion on any point, then an advance ruling can’t be issued. A duplicate of the advance ruling signed by the Members is sent to the applicant, the prescribed or the jurisdictional CGST / SGST officer, and to the Authority.

Rectification of Advance Ruling

The Authority or the Appellate Authority can modify its own order to improve any apparent error if it’s noticed within six months from the date of the order by –

The Appellate Authority on its own or

By the prescribed or the jurisdictional CGST / SGST officer or

The applicant

Any rectification which is able to lead to an increase in liabilities or a decrease in input decrease (i.e., a negative impact) is going to be done only after giving notice and a chance of being heard by the applicant.

Applicability of Advance Ruling

The advance ruling is going to be binding only – (a) On the applicant (b) On the jurisdictional tax authorities in respect of the applicant. If the law or the facts of the initial advance ruling change then the advance ruling won’t apply.

Can The Advance Ruling Become void?

If the appellant has obtained the advance ruling by fraud or suppression of fabric facts, then the Authority or the Appellate Authority will declare the ruling to be void at first. All the provisions of GST will apply to the applicant as normal with no advance ruling. a chance of being heard is going to be given to the applicant.

Powers of the Authority and Appellate Authority

The Authority or the Appellate Authority has all the powers of a civil court under the Code of Civil Procedure for the needs of- (a) Discovery and inspection; (b) Enforcing the attendance of an individual and questioning him on oath; (c) Investigations and enforcing production of books and other records, Every proceeding before the Authority or the Appellate Authority are a deemed legal proceeding.

The procedure of the Authority and also the Appellate Authority

The Authority or the Appellate Authority has the facility to manage its own procedure all told matters arising out of the exercise of its powers.

What Happens if the Taxable Person is Unhappy with the choice of the Appellate Authority?

GST Act doesn’t specially mention the procedure for appealing against the Appellate Authority. So, it’s expected to be kind of like the previous legal system. The person can appeal against the Appellate Authority through a special dispensation to the Division Bench of the judicature as decided by the Supreme Court within the case of Colombia Sportswear company vs. Director of tax, Bangalore-2012.