Advance Ruling (GST): Definition, Meaning & Guide for Indian Businesses

Advance Ruling is a clarification from the GST authority about a specific tax position before you take it. Binding on you and the department for the transactions covered.

What is Advance Ruling (GST)?

Section 95 of the CGST Act allows any taxpayer to apply for an Advance Ruling on classification, ITC eligibility, applicability of a notification, rate of tax, or whether a particular activity attracts GST. File Form GST ARA-01 with the State Advance Ruling Authority. Fee: ₹5,000. Ruling is issued within 90 days and is binding on the applicant and the department, but only for the transactions described. Useful when you're entering a new line of business or a grey area (online services, software classification, e-commerce models).