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CA Final · Indirect Tax Laws · Advance Ruling

Anand Traders obtained an advance ruling on the rate of GST on a product it supplies. Its competitor, Bharat Traders, deals in the identical product in the same State but did not apply for any ruling. Later, the law supporting the ruling remained unchanged. As per section 103 of the CGST Act, 2017, the ruling pronounced by the Authority is binding on:

The ruling binds only Anand Traders, the applicant, and the concerned or jurisdictional officer in respect of Anand Traders. Section 103(1) limits binding effect to the applicant and the officers dealing with that applicant, so a competitor that did not apply is not bound.

  1. AAnand Traders and the concerned or jurisdictional officer in respect of Anand Traders onlyCorrect
  2. BAnand Traders and Bharat Traders, as both deal in the same product
  3. CAll registered persons in the State dealing in the product
  4. DOnly the jurisdictional officer, not the applicant

Explanation

Section 103(1) makes the ruling binding only on the applicant who sought it and on the concerned or jurisdictional officer in respect of that applicant. Bharat Traders is not an applicant, so it is not bound. The ruling stays binding unless law, facts or circumstances supporting it change.

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