Applicability of Advance Ruling

[Narayan Pujar]

Hello Friends,

How does one interpret Sub-section 2 of Section 103 relating to advance ruling -

'The advance ruling referred to in sub-section (1) shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed.'

Example - if an inward supply which was purely for office purposes and accordingly the ruling was also pronounce that ITC will be available. Later after some years, if the inward supply is put to personal or non-business use, whether the non-applicability of advance ruling will be retrospective or prospective? Are there any legal precedents to support that it will be prospective?

I personally believe that it shall be prospective because the advance ruling when applied was based on the facts that existed then unaware of the changes that can take place later. Applying retrospectively seems unfair.

AI Summary

Debate on GST advance rulings: Do changes in goods use affect prospective or retrospective application? A forum discussion focuses on the applicability of advance rulings under GST, particularly whether changes in the use of goods affect the ruling's prospective or retrospective application. The original query questions if an advance ruling remains applicable when the purpose of goods changes from business to personal use. Respondents generally agree that the ruling should apply prospectively, as it was based on the facts at the time of issuance. One respondent highlights that advance rulings have a 'shelf life' due to frequent legal amendments. Another participant queries about tax implications under reverse charge mechanism for interstate legal services.