Next month, the Goods and Services Tax ( GST ) Council is likely to consider the proposal for forming an Appellate Authority for Advance Ruling (AAAR) at the national level.
The move to set up a national bench aims at removing uncertainty created by the advance rulings of different State benches,
According to sources, the tax department is mulling on the idea of a national bench of Advance Ruling (AAR) mechanism in its current form is not serving its objective of providing certainty to taxpayers under the Goods and Services Tax (GST) regime.
“There has been a view that a second Appellate Authority for Advance Ruling needs to be set up. It would be a national bench only to reconcile divergent verdicts passed by state AARs. We will present the proposal before the GST Council, which is expected to meet in June,” an official told PTI.
The State Advance Ruling Authorities have passed about 470 orders so far. Out of this, the Appellate authorities have disposed of around 69 cases till March 2019. Out of the orders passed by AARs, contradictory orders were passed in about 10 cases, a couple of which were later clarified by the Central Board of Indirect Taxes and Customs (CBIC).
The official further said the GST law would have to be amended for setting up a second appellate authority since the Act in its present form does not provide for a centralized authority.
