Rishabh intends to start selling certain goods in Delhi. However, he is not able to determine (i) the classification of the goods proposed to be…

CA Final · Indirect Tax Laws · MTP · September 2025
Rishabh intends to start selling certain goods in Delhi. However, he is not able to determine (i) the classification of the goods proposed to be supplied by him [as the classification of said goods has been contentious] and (ii) the place of supply if he supplies said goods from Delhi to buyers in U.S. Rishabh's tax advisor has advised him to apply for the advance ruling in respect of these issues. He told Rishabh that the advance ruling would bring him certainty and transparency in respect of the said issues and would avoid litigation later. Rishabh agreed with his view, but has some apprehensions. In view of the information given above, you are required to advise Rishabh with respect to following: (i) Rishabh is apprehensive that if at all advance ruling is permitted to be sought, he has to seek it every year. Whether Rishabh's apprehension is correct? (ii) The tax advisor is of the view that the order of Authority for Advance Ruling (AAR) is final and is not appealable. Whether the tax advisor's view is correct?

Suggested Answer and Working Notes:

(i) Section 103 (2) of the CGST Act, 2017 stipulates that the advance ruling shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed. Therefore, once Ranjan has sought the advance ruling with respect to an eligible matter/question, it will be binding till the time the law, facts and circumstances supporting the original advance ruling remain same. (ii) No, the tax advisor's view is not correct. As per section 100 of the CGST Act, 2017, if the applicant is aggrieved with the finding of the AAR, he can file an appeal with Appellate Authority for Advance Ruling (AAAR). Similarly, if the concerned/ jurisdictional officer of CGST/SGST does not agree with the findings of AAR, he can also file an appeal with AAAR. Such appeal must be filed within 30 days from the date on which the ruling sought to be appealed against is communicated. The Appellate Authority may allow additional 30 days for filing the appeal, if it is satisfied that there was a sufficient cause for delay in presenting the appeal.

Topics: Advance Ruling

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