GST Jamku AIApplicability of advance ruling.
Section 103(1)
The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only—
(a) on the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ruling;
(b) on the concerned officer or the jurisdictional officer in respect of the applicant.
An advance ruling is a decision made by the Authority or the Appellate Authority as per Section 103(1). This ruling holds significance in specific situations outlined in Section 97(2). Let's break down the applicability of such rulings.
Who Does it Affect? The ruling has a binding effect on two main parties:
Applicant: If you're the one who asked for the advance ruling, it directly applies to you.
Officers: The ruling also affects the concerned officer or the jurisdictional officer dealing with your case.
Details Behind Section 103(1): Section 103(1) emphasizes that the ruling doesn't have a blanket impact. It is limited to the specific matter outlined in Section 97(2) for which the advance ruling was sought.
Conclusion: In essence, an advance ruling provides clarity on certain matters, but its influence is confined to the applicant and the relevant officers. This ensures a fair and precise application of the ruling to the specific situation it addresses.
Section 103(1A)
The advance ruling pronounced by the National Appellate Authority under this Chapter shall be binding on—
(a) the applicants, being distinct persons, who had sought the ruling under sub-section (1) of section 101B and all registered persons having the same Permanent Account Number issued under the Income-tax Act, 1961 (43 of 1961);
(b) the concerned officers and the jurisdictional officers in respect of the applicants referred to in clause (a) and the registered persons having the same Permanent Account Number issued under the Income-tax Act, 1961 (43 of 1961).
When the National Appellate Authority issues an advance ruling under this Chapter, it has important implications for various parties. Let's break it down.
Binding on Applicants
(a) Distinct Persons and Registered Individuals:
- The ruling is binding on applicants who are distinct persons.
- It also applies to all registered persons with the same Permanent Account Number (PAN) issued under the Income-tax Act, 1961 (43 of 1961), who sought the ruling under sub-section (1) of section 101B.
Binding on Officers
(b)Concerned and Jurisdictional Officers
- The advance ruling is also binding on officers.
- This includes both concerned officers and jurisdictional officers.
- This binding effect extends to the applicants mentioned in clause (a) and the registered persons with the same PAN issued under the Income-tax Act, 1961 (43 of 1961).
In simpler terms, when the National Appellate Authority issues an advance ruling, it means that the ruling must be followed by those who sought it, whether they are distinct persons or registered individuals with the same PAN. Additionally, officers involved in the process, both concerned and jurisdictional, are also obligated to adhere to the ruling. This ensures a clear and consistent application of the ruling across different parties and officers involved in the specified context.
Section 103(2)
The advance ruling referred to in sub-section (1) [and sub-section (1A)] shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed.
What is an Advance Ruling?
An advance ruling is like a decision made in advance about a particular situation. It's a way for people to know, ahead of time, how the law will apply to them in a specific case.
Binding Nature of the Ruling
The ruling mentioned in Section 103(2) is something you have to follow. It's like a rule that you must stick to. This is unless there are changes in the law, facts, or situations that were considered when the original ruling was given.
When is it Binding?
The ruling becomes a must-follow guideline unless there are significant changes in the things that were taken into account when the original decision was made.
Changes Can Make it Not Binding
If something big changes in the law, the facts, or the situation, the advance ruling might not be something you have to follow anymore. It's like saying, "You have to do it this way, unless things have changed a lot."
In simpler terms, Section 103(2) is telling us that advance rulings are like early decisions that you need to stick to, unless there are big changes in the things that were considered when the decision was made.