Government proposes AAR to help traders obtain advance ruling on GST
NEW DELHI: To keep litigations under check, the government is proposing to set up an Authority for Advance Rulings ( AAR) for ascertaining the future tax liability with regard to GST.
According to the draft GST legislation, the applicants could approach the authority for determination of its Goods and Services Tax liability for goods or services.
The ruling could also be obtained with regard to classification of goods and services, determination of value of the goods, and appapplication.
The authority can have several branches and each will comprise one member appointed by the central government and one from the state government.
“The qualification, eligibility conditions, method and process of appointment of members shall be as may be prescribed”, the draft said.
The government proposes to role out new indirect tax regime GST from April 1, 2016. While the Constitution Amendment Bill is pending in Rajya Sabha, the Centre is getting the administrative preparedness for smooth roll-out of GST.