2019-06-29_Corporate_Professional_Today

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June 29 To July 5, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 46

Taxpayers and tax practitioners had tough

time due to different interpretation of law,

classification of goods and services, admissibility

of input tax credit, applicability of exemption

notification and these issues gave birth to

litigation. In order to get the solutions to those

queries taxpayers started filing applications

for advance ruling.

Setup of Authority for Advance Ruling

(Quasi Judiciary)

The Authority for Advance Ruling is a body

which is setup to provide directions to taxpayers

with respect to any confusion relating to

law or any transaction undertaken or to be

undertaken. The following matter scan be

raised before Authority of Advance Ruling:

1. Classification of any goods/services


2. Applicability of notification on goods or
   services supplied by assessee


3. Determination of time and value of supply


4. Admissibility of input tax credit


5. Determination of the tax liability


6. Registration requirement under GST


7. Any transaction amounts to or results in
   a supply of goods or services as per
   the law.

The issue as to the ‘determination of place of

supply’ cannot be determined by Authority

for Advance Rulings (AAR) or Appellate

Authority for Advance Rulings (AAAR).

If the taxpayers believes that there is some

error in ruling pronounced by AAR, he may

choose to file an appeal to the Appellate

Authority for Advance Ruling within 30

days from the date Authority for Advance

Ruling’s order is communicated.

In order to ensure timely disposal of the

application filed with Authority for Advance

Ruling, it has also been provided in GST

lawthat the AAR must pronounce its ruling

in writing within the period of 90 days from

the receipt of application.

Number of applications filed with AAR

and AAAR

The Authority for Advance Ruling (State

benches and area benches) has been established

in all 29 States and 7 Union Territories (with

and without Legislature). The Appellate

Authority for Advance Ruling (AAAR) has

also been constituted in all States and UT

except in Delhi and Punjab. The number of

applications filedwith both the authorities

since the date of GST implementation till

April 30, 2019 are as follows:

With Authority for Advance Ruling (AAR)

1. Total no of applications filed and disposal rate

S.

no

Relevant State or UT Total

Applications

Total Disposal Pending Applications Disposal %

1 All States including

Union Territories

884 480 404 54.30

2. Top 5 States wherein applicants applied for Advance Ruling

Sr.

no

Relevant State

or UT

Total

Applications

Total

Disposal

Pending

Applications

Contribution in

total applications

Disposal %

1 Karnataka 139 39 100 16% 28%

2 Gujarat 125 36 89 14% 29%

3 Maharashtra 122 94 28 14% 77%

RISING GRAPH OF LITIGATIONS UNDER GST