Page 9 - Chap17 Advance Ruling

which Ranjan proposes to supply at the same commercial level that Ranjan proposes to adopt.
He intends to apply the classification of the goods as decided in the advance ruling order to be
obtained by Ranjan, to the goods supplied by him in Delhi. Whether Sambhav can do so? [Study
Mat] [CA Final RTP May 18 Exam] [CA Final MTP March 19] [CA Final May 23 Exam (Similar)]
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.

2 Legal Provision:-
Ü As per section 97(2) of CGST Act, 2017, one of the questions/matters on which advance ruling
can be sought is to determine the classification of any goods or services or both.

Ü Determination of place of supply is not one of the specified questions/matters on which advance
ruling can be sought under section 97(2).
Ü As per section 96 of CGST Act, 2017, AAR is constituted under the respective SGST Act / UTGST
Act and not under the CGST Act & hence, the Ruling given by AAR of one State/ Union Territory

shall be applicable only within the jurisdiction of the concerned State/ Union Territory.
Discussion & Conclusion:-
Ü Ranjan can seek advance ruling for determining the classification of goods proposed to be
supplied by him.

Ü Questions on determination of place of supply cannot be raised with the AAR & hence, Ranjan
cannot seek the advance ruling for determining the place of supply of goods proposed to be
supplied by him.
Note:- Above answer is based on view taken by CBIC in its E-flier issued on advance ruling. E-flier is

available on CBIC's website. However, it can be also be argued that question relating to determination
of the liability to pay tax on goods and/or services as provided under section 96(2)(e) of the CGST
Act, 2017 encompasses within its ambit the question relating to place of supply. This is so because
place of supply is one of the factor to determine whether supply is leviable to CGST & SGST or IGST.
3 Legal Provision:-

Ü As per section 103(2) of CGST Act, 2017, advance ruling shall be binding unless the law, facts or
circumstances supporting the original advance ruling have changed.
Discussion & Conclusion:-
Ü Therefore, once Ranjan has sought the advance ruling with respect to an eligible matter/

question, it will be binding till the time the law, facts and circumstances supporting the original
advance ruling remain same.
4 Ü No, the tax advisor's view is not correct.
Ü As per section 100 of CGST Act, 2017, if the applicant is aggrieved with the finding of AAR, he can

file an appeal with Appellate Authority for Advance Ruling (AAAR).
Ü Similarly, if the concerned / jurisdictional officer of CGST/SGST does not agree with the findings
of AAR, he can also file an appeal with AAAR.

Ü Such appeal must be filed within 30 days from the date on which the ruling sought to be appealed
against is communicated.

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