The Government of Karnataka has reconstituted the Karnataka Authority for Advance Ruling (KAAR) under the provisions of the Karnataka Goods and Services Tax Act, 2017.
According to the official notification dated August 1, 2025, issued by the Finance Department of the Karnataka Government, the KAAR will now comprise two senior tax officials namely M.S. Kalyanam Rajesh Rama Rao, Additional Commissioner, Central Tax and K.S. Basavaraj, Additional Commissioner of Commercial Taxes (E-Governance), Bengaluru
The reconstitution has been carried out under the powers conferred by Section 96 of the Karnataka GST Act, which mandates the formation of an Authority for Advance Ruling in each state. The KAAR plays a vital role in providing clarity on GST-related queries from taxpayers, especially in areas such as classification of goods and services, rate applicability, and input tax credit eligibility.
The notification was issued under the authority of the Governor of Karnataka and signed by H.R. Lalitha, Under Secretary to the Government, Finance Department (Expenditure – 2 & 10).
The formation of KAAR is seen as a significant step in enhancing transparency and legal certainty for businesses operating under the GST regime. Tax experts have welcomed the move, noting that the Authority will help mitigate litigation by offering binding rulings in advance on complex tax issues.
The official announcement appeared in the Karnataka Gazette (Part IVA) dated August 2, 2025.
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