Page 4 - Chap17 Advance Ruling

01. General Questions:-
CCP 17.01.01.00
Answer the following questions:-
1. What is the meaning of Advance Ruling under GST law?
2. What is the objective of having a mechanism of Advance Ruling? [Study Mat]

Answer :
1. As per section 95 of CGST Act, 'Advance Ruling' means a decision provided by the Authority or the
Appellate Authority to an applicant on matters or on questions specified in section 97(2) or 100(1), in

relation to the supply of goods or services or both being undertaken or proposed to be undertaken by
the applicant.
2. The broad objective for setting up an Advance Ruling authority is to:-
a) Provide certainty in tax liability in advance in relation to an activity proposed to be undertaken by the

applicant.
b) Helps taxpayer in financial planning and making new investments.
c) Attract Foreign Direct Investment (FDI) by ensuring certainty in taxation aspects of transactions.
d) Reduce litigation.

e) Pronounce ruling expeditiously in transparent and inexpensive manner.

02. Sec 97- Application for Advance ruling

CCP 17.02.02.00
Can Mr. Venkat obtain advance ruling for the issue related to place of supply? Also list all issues for

which advance ruling can be sought. [CA Final Nov 22 Exam] [Study Mat] [CMA Final RTP Dec. 18]
[CA Final MTP Mar 24 ]
Answer : No, Venkat cannot obtain advance ruling for issue related to place of supply. Advance Ruling

can be sought for the following questions:-
a) Classification of any goods or services or both.
b) Applicability of a notification issued under provisions of the GST law.
c) Determination of time and value of supply of 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.

Note by ICAI:-
Ü The above answer is based on view taken by CBIC in its e-flyer issued on 'advance ruling'.

Ü However, it is also possible to take a view that question relating to determination of liability to pay tax
on goods and/or services as provided u/s 96(2)(e) of CGST Act encompasses within its ambit the
question relating to place of supply.
Ü This is so because place of supply is one of the factors to determine as to whether the supply is leviable

to CGST & SGST or IGST.
Ü In that case, conclusion will be- Venkat can obtain advance ruling for issue related to place of supply.

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