Advance rulings under GST create inconsistent precedents, binding only on applicants and increasing litigation and taxpayer uncertainty.
Advance rulings under GST, intended to provide certainty, are limited to specified legal questions and are binding only on the applicant and the applicant's jurisdictional authority; however, AARs/AAARs staffed without judicial members have produced conflicting, often revenue favouring precedents, and the unconstituted NAAAR leaves no effective appellate forum, causing litigation, inconsistent recovery practices, and taxpayer uncertainty. (AI Summary)