Advance Ruling in GST

GST - Goods and Service Tax is a Good and Simple Tax. Before GST, in the previous tax regime each State had their own Act and Rules. Also each municipal authority had their own Act and Rules which had to be followed by taxpayers while moving their goods from one local municipal area to another. As a reason , the taxpayers had to face lot of challenges especially those having multi State existence in keeping track of the changes and comply according to those changes. Now, those difficulties are done away with with the advent of GST. Now, there is one GST Act and Rules applicable to all the States. Central Goods and Service Tax - CGST Act, is being replicated by each States. Thus, a taxpayers are now not required to visit each and every tax website to see Notification or Circular. He /She can only refer CGST Act and Rules to understand the changes. This has eased the taxpayer in compliance.

On the other hand there are challenges in interpreting the law which gave birth to lot of Advance Ruling, High Court cases etc. The law is subject to interpretation. The lawmaker interpret it in their side and taxpayer does it in his side. In order to avoid litigation the facility of Advance Ruling is given in the GST law. A taxpayer can file application with their query and supporting material which the Authority for Advance Ruling will study and provide a suitable answer. If the taxpayer is not happy then he/she can take it to a further level and appeal it to Appellate Authority for Advance Ruling.

In these three years of journey of GST, there are numerous advance ruling being passed. Some are in favour of taxpayer and some are revenue side. It becomes difficult to keep track of those ruling. There is a facility in GST Council website with a tab where the list of advance ruling is available. There is a filter available to select State-wise or by Applicant or by question on which advance ruling is sought or by year. The ruling in pdf is made available by the Govt. therein for ease of taxpayer to refer for their understand and reference.