Page 6 - Chap17 Advance Ruling

05. Sec 103- Applicability of advance ruling

CCP.17.05.05.00
To whom will the Advance Ruling be applicable? [Study Mat]
Answer :

Ü The advance rulings are given in personem and not in rem, that is, not to the whole world and therefore,
rulings cannot apply to other similar cases.
Ü Section 103 of CGST Act provides that an advance ruling pronounced by AAR or AAAR shall be binding
only:-

Ø on the applicant who sought it in respect of any matter specified under section 97(2) and
Ø on the concerned officer or jurisdictional officer of the applicant.
Ü This means that an advance ruling is not applicable to similarly placed taxable persons in the State.
Ü It is only limited to the person who has applied for an advance ruling.

CCP 17.05.06.00
What is the time period for applicability of Advance Ruling? [Study Mat]
Answer :

Ü The law does not provide for a fixed time period for which the ruling shall apply.
Ü Instead, section 103(2) of CGST Act provides that advance ruling shall be binding till the period when
the law, facts or circumstances supporting the original advance ruling have changed.
Ü Thus, a ruling shall continue to be in force so long as the transaction continues and so long as there

is no change in law, facts or circumstances.

06. Section 104:- Advance Ruling to be void/ nullified in certain cases
CCP.17.06.07.00
Advance Ruling once issued cannot be held to be void ab-initio under any circumstances. Discuss the

correctness of the statement by explaining relevant provisions. [CA Final RTP Nov 23] OR
Can an advance ruling given be nullified? [Study Mat] OR
Section 104 states the circumstances under which the ruling would be considered as void and hence
would lose its binding value. Explain

Answer:
Ü The said statement is incorrect.
Ü As per section 104(1) of CGST Act, an advance ruling shall be held as void ab-initio, if the AAR or AAAR

finds that the advance ruling was obtained by the applicant by fraud or suppression of material facts or
misrepresentation of facts.
Ü In such a situation, all the provisions of the GST Act(s) shall apply to the applicant as if such advance
ruling had never been made (but excluding the period when advance ruling was given and up to the
period when the order declaring it to be void is issued).

Ü An order declaring advance ruling to be void can be passed only after hearing the applicant.
Ü A copy of the order so made shall be sent to the applicant, the concerned officers and the jurisdictional
officer.

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