GST – Advance Ruling Appeals

Advance Tax ruling is nothing but a written explanation or interpretation of any provisions of law or Act given by the authority as a reply to an application submitted by any person. Such person can be an individual or a multi-national organization.

We have discussed advance ruling under GST in our previous article. Now let’s discuss what will happen if the applicant is not satisfied by such advance ruling made by the authority.In this article, we are going to cover the topic of appeals against such Advance Rulings.

Appellate Authority for Advance Ruling

Information relating to appellate authority is provided under Section 99 of Central Goods and Service Tax. It states that any appellate authority for advance ruling constituted under the provisions of a State Goods and Services Tax Act or a Union Territory Goods and Services Tax Act will be deemed as the appellate authority for advance ruling for those respective states and union territories.

Who can file an Appeal?

Under the provisions of this Act, if anyone of the following parties is aggrieved by the advance ruling passed by the authority then they can file an appeal against it with the appellate authority for the advance ruling:

  1. The applicant
  2. The concerned officer
  3. The jurisdictional officer

Every appeal under this chapter is required to be filed in the prescribed manner along with the applicable fees.

Time limit for appeal

An appeal against an order of advance ruling can be filed within 30 days from the date of communication of such ruling to the concerned person. However, if the appellate tribunal is of the opinion that there was sufficient and valid cause for any delay in filing of such an appeal, then an extension of not more than 30 days can be granted.

Orders of Appellate Authority

  • Once an appeal is filed against any advance ruling, appellate authority will give an opportunity of being heard to all the concerned parties.
  • After hearing the sides of all the concerned parties, appellate authority will pass an order either confirming or rectifying the ruling appealed against.
  • If the members of the appellate authority are of the different opinion and are unable to come to a conclusion, then it is assumed that no advance ruling can be issued on the said questions of the applicant.
  • However, if the appellate tribunal comes to a conclusion on the appeal and passes an order. Then duly signed and certified copy of such order are to be sent to the following parties:
  1. The applicant
  2. The concerned officer
  3. The jurisdictional officer
  4. The Authority

Appeal Disposal Period

Once an appeal is filed with the appellate tribunal, they are liable to dispose of such appeal within a period of 30 days.

On Whom Advance Ruling will Apply to

The big question is once an advance ruling is passed will it apply to everybody in such situation as the applicant? The answer is no. An act has clearly specified about the applicability of such advance rulings passed by Authority or Appellate Authority. It will apply to the following;

  1. The applicant who had filed for advance ruling or appeal
  2. The concerned officer and jurisdictional officer.

This applicability will be valid until there is no change in the concerned laws, facts and circumstances. 

Rectification of Advance Ruling

Now let’s discuss if any advance ruling once passed can be altered or rectified. If there is any apparent mistake in the advance ruling made by the Authority or Appellate Tribunal of Advance ruling, then it can be amended within 6 months from the date of order.

Such amendment can be done by any Authority or Appellate Tribunal of Advance ruling on their own accord, or based on an application made by any of the following:

  1. The applicant
  2. The concerned officer or the jurisdictional officer.

However such rectification will only be valid if an opportunity of being heard is given to the applicant in the given cases:

  • If such rectification increases the tax liability of the applicant
  • If such rectification reduces the amount of admissible input tax credit.

When is Advance Ruling termed Void

If the Appellate authority is of the opinion that any advance ruling passed by them is a result of:

  • Fraud done by applicant
  • Misinterpretation of facts or
  • suppression of material facts

then such advance ruling will be declared void.