The government is planning to revamp the advance ruling mechanism under GST by setting up either a centralised authority or 4 regional authorities, in the wake of the contradictory orders passed by AARs in different states. Under the Goods and Services Tax (GST) law, each state is required to set up Authority for Advance Rulings (AAR) comprising one member from the central tax department, and the other from the respective state. The AARs in different states have so far passed about 60 orders under the GST law, while most states are yet to set up the GST appellate authority to entertain appeal against AAR verdict. Recently, the New Delhi bench of the AAR had held that duty-free shops at airports are liable to deduct GST from passengers. AMRG & Associates Partner Rajat Mohan said, the decision making in income tax AARs is entrusted to an independent adjudicatory body headed by a retired judge of the Supreme Court.

Source: dna June 05, 2018 18:56 UTC