The Institute of Chartered Accountants of India (ICAI) has issued the handbook on advance ruling under Goods and Service Tax (GST).
The ICAI has released a revised and expanded edition of its “Handbook on Advance Ruling under GST”, aiming to provide clearer guidance to taxpayers, professionals and businesses navigating the complex landscape of indirect taxation. The publication, updated as of 26 November 2025, offers comprehensive insights into the legal provisions governing advance rulings under the Goods and Services Tax (GST) regime.
The handbook—published by ICAI’s GST & Indirect Taxes Committee—covers statutory provisions from Sections 95 to 106 of the CGST Act, along with relevant rules, procedures, FAQs, practical workflows and case law references. It is designed to enhance awareness of dispute-prevention mechanisms and promote predictability and uniformity in tax administration.
In his foreword, ICAI President CA Charanjot Singh Nanda highlighted the critical role of advance rulings in improving transparency and investor confidence. He noted that the mechanism helps taxpayers obtain clarity on GST implications before entering transactions, thereby reducing exposure to litigation.
The handbook explains that advance rulings may be sought on questions related to classification, applicability of notifications, time and value of supply, input tax credit, tax liability determination, registration requirements, and whether an activity constitutes a supply.
Addresses Emerging Legal Issues
The revised edition reflects major judicial developments, including:
- High Court rulings affirming that service recipients are eligible to seek advance rulings, even when not explicitly stated in earlier interpretations.
- Clarifications on place of supply disputes, following courts’ views that such questions may fall under “determination of tax liability.”
- Divergent positions on transitional credit eligibility, with the handbook analysing conflicting AAR and AAAR outcomes.
Covers New Appellate Framework
A significant addition is the detailed chapter on the yet-to-be-operationalised National Appellate Authority for Advance Ruling (NAAAR), introduced under the Finance (No. 2) Act, 2019. The publication outlines its constitution, powers, proposed structure and the role it will play in resolving conflicting rulings issued by different state-level authorities.
Practical Utility for Professionals
The handbook includes:
- Step-by-step procedures for filing AAR/AAAR applications
- Portal navigation and manual filing instructions
- Flowcharts, diagrams and FAQs
- Commentary on common mistakes, examples of maintainability issues and guidance on drafting questions effectively
The Committee Chairman CA Rajendra Kumar P and Vice-Chairman CA Umesh Sharma emphasised that the publication seeks to serve as a ready reference for both taxpayers and practitioners, particularly in an era where advance rulings have increasingly shaped GST jurisprudence.
Supporting a Modern GST Ecosystem
Since the rollout of GST in 2017, ICAI has remained a key stakeholder in policy discussions, capacity building and knowledge support. The new edition aligns with the Institute’s ongoing mission to strengthen the tax ecosystem through clarity, education and professional excellence.
The handbook is available through ICAI’s official platforms, offering a valuable resource for businesses, consultants and tax administrators seeking to minimise uncertainties and ensure compliance under India’s indirect tax framework.
