ICAI Releases Handbook on Advance Ruling under GST 2025 [DOWNLOAD HANDBOOK]

The Institute of Chartered Accountants of India (ICAI) has released the Handbook on Advance Ruling under GST - 2025 Edition to help taxpayers and professionals clearly understand the Advance Ruling system under the Goods and Services Tax (GST) law .

This handbook is especially useful for businesses, tax professionals, and students who want clarity on GST-related doubts before entering into transactions.

What is an Advance Ruling under GST?

An Advance Ruling is a written decision given by a GST authority on specific questions raised by a taxpayer.

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It helps a taxpayer know how GST law will apply to a proposed or ongoing business activity.

It answers questions like:

• Which GST rate will apply?
• Is a particular activity taxable?
• Can input tax credit be claimed?
• Is GST registration required?

The Advance Ruling mechanism exists to:

• Remove confusion in GST law
• Give certainty in tax liability
• Reduce future disputes with tax authorities
• Avoid long and costly litigation
• Support ease of doing business

What does the ICAI Handbook cover?

The 2025 Handbook explains the Advance Ruling system in a clear and practical manner. It covers:

• Meaning and objectives of Advance Ruling
• Legal provisions under the CGST Act
• Questions on which Advance Ruling can be sought
• Matters outside the scope of Advance Ruling
• Procedure for filing an application
• Role of Authority for Advance Ruling (AAR)
• Appeal process before Appellate Authority (AAAR)
• National Appellate Authority and GST Appellate Tribunal
• Binding nature of Advance Ruling
• Rectification and void rulings
• Step-by-step portal procedure
• FAQs, flowcharts, and illustrations

The handbook includes updates up to November 2025.

Who can apply for an Advance Ruling?

Any person who is registered under GST, or is planning to take GST registration. Even an unregistered person can apply if they intend to start a taxable business.

Is the Advance Ruling binding?

Yes, the ruling is binding, but only on:

• The applicant, and
• The GST officers having jurisdiction over the applicant

It remains valid unless there is a change in law or facts.

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