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CA Final · Indirect Tax Laws · Advance Ruling

Kaveri Foods Ltd obtained an advance ruling from the Authority for Advance Ruling and was dissatisfied with it. It files an appeal on the common portal in FORM GST ARA-02. Another company, Narmada Foods Ltd, is unconnected and is in a similar business. Which statement is correct under the CGST Act and Rules?

The appeal fee is Rs 10,000, and the ruling binds only Kaveri Foods and the concerned or jurisdictional officers in respect of Kaveri. An advance ruling is not binding on other taxpayers, even those in a similar business, under section 103(1).

  1. AThe appeal fee is Rs 5,000 and the ruling binds all registered persons dealing in similar goods
  2. BThe appeal fee is Rs 10,000 and the ruling binds only Kaveri Foods and the concerned and jurisdictional officers in respect of KaveriCorrect
  3. CThe appeal is free of fee and the ruling binds Narmada Foods as well
  4. DThe appeal fee is Rs 10,000 and the ruling binds Narmada Foods as it is in the same business

Explanation

An applicant's appeal in FORM GST ARA-02 carries a fee of ten thousand rupees. Under section 103(1), the ruling binds only the applicant and the concerned or jurisdictional officer in respect of the applicant. It does not bind unconnected persons such as Narmada Foods.

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