Goods and Service Tax, Advance Ruling under Goods and Service Tax Regime

Abstract

Progress of Goods and Service Tax in India The deliberation of a Goods and Services Tax (GST) for India was first mooted sixteen years back, during important Minister Ship of Shri Atal Bihari Vajpayee. Thereafter, on 28th February 2006, the then Union Finance Minister in his Budget for 2006-07 planned that GST would be brought in from 1st April 2010. The Empowered Committee of State Finance Ministers (EC), which had formulated the plan of State VAT was requested to move toward up with a roadmap and arrangement for the GST. Joint Working Groups of officials having the legislative body of the States as well as the Centre were set up to examine various aspects of the GST and draw up reports exclusively on exemptions and thresholds, taxation of services and taxation of inter-State supplies. Based on planning within and between it and the Central Government, the EC released its First Discussion Paper (FDP) on GST in November 2009. The FDP spelled out the features of the planned GST and has formed the basis for the present GST laws and rules.In March 2011, foundation (115th Amendment) Bill, 2011 was introduced in the Lok Sabha to enable the charge of GST. However, due to a lack of political compromise, the Bill failed after the extinction of 15th Lok Sabha in August 2013. On 19th December 2014, The establishment (122nd Amendment) Bill 2014 was introduced in the Lok Sabha and was approved by Lok Sabha in May 2015. The Bill was taken up in Rajya Sabha and was referred to the Joint Committee of the Rajya Sabha and the Lok Sabha on 14th May 2015. The Committee submitted its report on 22nd July 2015. Thereafter, the Constitutional alteration Bill was moved on 1st August 2016 based on a political agreement. The Bill was passed by the Rajya Sabha on 3rd August 2016 and by the Lok Sabha on 8th August 2016. After authorization by the required number of State legislatures and agree of the President, the Constitutional amendment was notified as Constitution (101st Amendment) Act 2016 on 8th September 2016. The Constitutional amendment cemented the way for the introduction of Goods and Services Tax in India. After GST Council accepted the Central Goods and Services Tax Bill 2017 (The CGST Bill), the Integrated Goods and Services Tax Bill 2017 (The IGST Bill), the Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill), the Goods and Services Tax (reimbursement to the States) Bill 2017 (The Compensation Bill), these Bills were passed by the Lok Sabha on 29th March 2017. The Rajya Sabha accepted these Bills on 6th April 2017 and was then enacted as Acts on 12th April 2017.Thereafter, State Legislatures of different States have passed particular State Goods and Services Tax Bills. After the passing of various GST laws, GST was launched with effect from 1st July 2017 by Shri. Narendra Modi, Hon'ble Prime Minister of India in the attendance of  Shri. Pranab Mukherjee, the then President of India at the Central Hall of Parliament of India

 Keywords: AR(Advance Ruling), AAR (Authority of Advance Ruling), AAAR (Appellate Authority of  Advance Ruling), GST (Goods & Service Tax), CGST (Central Goods and Service Tax) and SGST (State Goods and Service Tax)