Section 104 of GST – Advance ruling to be void in certain circumstances

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GST Act 2017: Section 104 of GST Act 2017 – Advance ruling to be void in certain circumstances. Check out details for GST Section 104 as per CGST Act 2017. Complete Analysis of GST Section 104, Section 104 of GST provide details for Advance ruling to be void in certain circumstances. Explanation of Goods and Service Tax all Sections. Check Section Wise Analysis of GST Act 2017, Chapter Wise Analysis of GST All Sections. in this article you may find complete details regarding Section 104 of CGST Act 2017 – Advance ruling to be void in certain circumstances, gst all section and definitionsNow Check more details from below…..

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Section 104 of GST – Advance ruling to be void in certain circumstances

Statutory Provision

(1) Where the Authority or the Appellate Authority finds that advance ruling pronounced by it under sub-section (4) of section 98 or under sub-section (1) of section 101 has been obtained by the applicant or the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the applicant or the appellant as if such advance ruling had never been made:

Provided that no order shall be passed under this sub-section unless an opportunity of being heard has been given to the applicant or the appellant.

Explanation.––The period beginning with the date of such advance ruling and ending with the date of order under this sub-section shall be excluded while computing the period specified in sub-sections (2) and (10) of section 73 or sub-sections (2) and (10) of section 74.

(2) A copy of the order made under sub-section (1) shall be sent to the applicant, the concerned officer and the jurisdictional officer.

Analysis and Updates

Introduction

It states the circumstances under which the ruling would be considered as void ab initio.

Analysis

(i) If the Authorities (AAR and appellate authority) find that the advance ruling order has been obtained by the applicant/appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio.

(ii) Consequently, all the provisions of the Act shall apply to the applicant as if such advance ruling had never been made.

(iii) Before passing the order, an opportunity of being heard should be given to the applicant/appellant.

(iv) The period beginning with the date of advance ruling and ending with the date of order under this sub-section shall be excluded in computing the period for issuance of Showcause notice and adjudication order under sub-section (2) and (10) of both Section 73 and 74 respectively.

(v) A copy of the order so made shall be sent to the applicant and the concerned/ jurisdictional officer.

Comparative review

The provision relating to the circumstances when an advance ruling can be declared void ab initio are more or less the same as those in the erstwhile central Indirect Tax laws as contained in section 23F of Central Excise Act, section 28K of Customs Act and section 96F of the Finance Act, 1994 except that under GST laws, an additional criterion of “suppression of material facts” has been added to serve as a basis for declaring an advance ruling void ab initio.

Related Provisions

Section/Rule/Form Description Remarks
Section 73(2) & 73 (10) Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any wilful misstatement or suppression of facts Sub-section 2 deals with time limit for issue of show-cause notice and subsection 10 deals with time limit for issuance of adjudication order.
Section 74(2) & 74 (10) Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any wilful misstatement or suppression of facts Sub-section 2 deals with time limit for issue of show-cause notice and subsection 10 deals with time limit for issuance of adjudication order.

FAQs

Q1. Can the advance ruling be declared as void without hearing?

Ans. No. Advance ruling cannot be declared as void unless the opportunity of being heard has been given.

Q2. Under what circumstances advance ruling can be declared as void?

Ans. The authority or the appellate authority may declare an advance ruling to be void ab initio if it the applicant or the appellant, as the case may be, has obtained it by fraud, suppression of material facts or misrepresentation of facts.

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