CGST Act, 2017 - Chapter XVII: Advance Ruling

Section 96 of CGST Act - Authority for Advance Ruling

Section 96 of the Central Goods and Services Tax Act, 2017 identifies the Authority for Advance Ruling (AAR) that functions for the purposes of the CGST Act in each State or Union territory. The provision links the Central GST advance-ruling framework with the corresponding Authority constituted under the applicable State GST or Union Territory GST law.

Section 95 - Definitions Section 97 - Application for advance ruling Section 98 - Procedure on application Section 99 - Appellate Authority

Text and meaning of Section 96

Section 96 - Authority for advance ruling

Subject to the provisions of Chapter XVII, the Authority for advance ruling constituted under the State Goods and Services Tax Act or Union Territory Goods and Services Tax Act is deemed to be the Authority for advance ruling, for the purposes of the CGST Act, in respect of that State or Union territory.

In practical terms, Section 96 avoids the need for a separate Central authority for each State or Union territory. The AAR constituted under the corresponding State GST or UTGST law also functions as the AAR for the CGST Act for that jurisdiction, subject to the provisions governing advance rulings in Chapter XVII.

What is the Authority for Advance Ruling?

For Chapter XVII, Section 95 defines the expression "Authority" by reference to the Authority for Advance Ruling referred to in Section 96. An advance ruling is a decision on specified GST questions concerning a supply of goods or services or both that is being undertaken or is proposed to be undertaken by an applicant.

The advance-ruling mechanism is intended to give an eligible applicant greater certainty about the GST treatment of a proposed or ongoing supply before a dispute develops. The questions that may be raised are governed principally by Section 97.

How Section 96 fits into the advance-ruling framework

Section 95 contains the key definitions for Chapter XVII, including "advance ruling", "applicant", "application" and "Authority".
Section 96 identifies the State or Union territory AAR that is treated as the Authority for purposes of the CGST Act.
Section 97 governs applications and the questions on which an advance ruling may be sought.
Section 98 provides the procedure after an application is received, including admission and pronouncement of the ruling.
Sections 99 to 101 deal with the Appellate Authority and appeals against advance rulings.
Sections 102 to 106 address rectification, applicability, rulings obtained by fraud or misrepresentation, powers and procedure.

Questions that may be taken to the AAR

Section 97(2) specifies the permitted subjects for an advance-ruling application. These include classification of goods or services, applicability of a notification, time and value of supply, admissibility of input tax credit, liability to pay tax, registration requirements, and whether a particular act concerning goods or services amounts to or results in a supply.

Application and procedure

An eligible applicant seeking an advance ruling proceeds under Section 97 and the applicable CGST Rules. Rule 104 prescribes FORM GST ARA-01 for an application and provides for the prescribed fee. The procedure after filing is governed by Section 98.

The statutory scheme should be read together with the current CGST Rules, notifications and portal procedures because forms and procedural requirements may be amended from time to time.

Binding effect of an advance ruling

Under Section 103, an advance ruling is binding only on the applicant who sought the ruling and on the concerned officer or jurisdictional officer in respect of that applicant. Its binding effect continues unless the law, facts or circumstances supporting the original ruling change.

Important distinction: Section 96 of the Act and Rule 96

Do not confuse Section 96 of the CGST Act with Rule 96 of the CGST Rules. Section 96 of the Act concerns the Authority for Advance Ruling. Rule 96 of the CGST Rules deals with refund of integrated tax paid on goods or services exported out of India.

Official legal resources

For the current statutory text and amendments, refer to the official CBIC CGST Act and the India Code - Central Goods and Services Tax Act, 2017. Current forms, services and advance-ruling functionality are available through the GST common portal.

This page is a general legal-information resource. Statutory provisions, rules, notifications and procedures should be checked in their latest official form before acting on them.