Shubham 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 · January 2026
Shubham 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. Shubham's tax advisor has advised him to apply for the advance ruling in respect of these issues. He told Shubham that the advance ruling would bring him certainty and transparency in respect of the said issues and would avoid litigation later. Shubham agreed with his view, but has some apprehensions. In view of the information given above, you are required to advise Shubham with respect to following: (i) The tax advisor asks Shubham to get registered under GST law before applying for the advance ruling as only a registered person can apply for the same. Whether Shubham needs to get registered? (ii) Shubham is apprehensive that if at all advance ruling is permitted to be sought, he has to seek it every year. Whether Shubham's apprehension is correct? (iii) 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? (iv) Goldy - Shubham's friend - is a supplier registered in Delhi. He is engaged in supply of the goods, which Shubham proposes to supply at the same commercial level that Shubham proposes to adopt. He intends to apply the classification of the goods as decided in the advance ruling order to be obtained by Shubham, to the goods supplied by him in Delhi. Whether Goldy can do so? (5 Marks)

Suggested Answer and Working Notes:

(i) Advance ruling under GST can be sought by a registered person or a person desirous of obtaining registration under GST law. Therefore, it is not mandatory for a person seeking advance ruling to be registered. (ii) The advance ruling shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed. Therefore, once Shubham 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. (iii) No, the tax advisor's view is not correct. 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. (iv) An advance ruling pronounced by AAR is binding only on the applicant who had sought it and on the concerned officer or the jurisdictional officer in respect of the applicant. This implies that an advance ruling is not applicable to similarly placed other taxable persons in the State. It is only limited to the person who has applied for an advance ruling. Thus, Goldy will not be able to apply the classification of the goods that will be decided in the advance ruling order to be obtained by Shubham, to the goods supplied by him in Delhi.

Topics: Advance Ruling

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic