Page 7 - Chap17 Advance Ruling

07. Combined Questions

CCP.17.07.08.00
Answer the following questions independently:-
1. Whether appeal can be filed before the High Court or Supreme Court against the ruling of AAAR?
2. Whether the Ruling given by AAR/AAAR of one State/Union Territory shall be applicable in
another State/ Union Territory?

Answer:
1. No. As the GST Act(s) do not provide for any appeal against the ruling of AAAR, no further appeals shall
lie and the ruling of AAAR shall be binding on the applicant and the jurisdictional officer in respect of
applicant. However, Writ Jurisdiction may lie before the High Court or Supreme Court.

2. No. The AAR/AAAR is constituted under the respective SGST Act / UTGST Act and not under the CGST
Act & hence, the Ruling given by AAR/ AAAR of one State/ Union Territory shall be applicable only
within the jurisdiction of the concerned State/ Union Territory.

CCP.17.07.09.00
Chandra is engaged in supplying certain goods in the State of Punjab from his factory located in

Jalandhar, Punjab. He is not yet registered under GST. As his turnover is moving towards the
applicable threshold limit for registration under GST, he approaches his tax advisor to ascertain the
applicability of GST on the supply made by him.
His tax advisor is unable to determine whether supply of goods by Chandra amounts to supply
of goods under GST law and also, the classification of said goods. He advises Chandra to apply for the

advance ruling in respect of said issues. He told Chandra that the advance ruling would bring him
certainty and transparency in respect of the said issues and would avoid litigation later. Chandra
agrees with his view, but has some apprehensions.

In view of the information given above, you are required to advise Chandra with respect to
following:-
1) The tax advisor asks Chandra to get registered under GST law before applying for the advance
ruling as only a registered person can apply for the same. Whether Chandra needs to get

registered before applying for advance ruling?
2) Can Chandra seek advance ruling to determine whether supply of goods by Chandra amounts to
supply of goods under GST law and if yes, to determine the classification of said goods?
3) Chandra is doubtful whether he can seek advance ruling in relation to an activity/transaction

already being undertaken. Whether Chandra's doubt is correct?
4) Chandra is apprehensive that Authority for Advance Ruling may take years to pronounce its
ruling. Whether his apprehension is correct? [CA Final RTP May 22]
Answer:
1 Legal Provision:-
Ü As per section 95(c) of CGST Act, 2017, Advance ruling under GST can be sought by a registered

person or a person desirous of obtaining registration under GST law.
Discussion & Conclusion:-
Ü Therefore, it is not mandatory for a person seeking advance ruling to be registered.

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