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GlossaryGSTWhat is Advance Ruling?
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What is Advance Ruling?

An advance ruling is a written decision from the Authority for Advance Ruling (AAR) on a GST question, binding on the applicant and the jurisdictional officer.

Bare Law Reference: Sections 95-106, CGST Act.

Detailed Explanation

How it works

A taxpayer can seek certainty on classification, rate, ITC eligibility or registration before undertaking a transaction. An appeal lies to the Appellate Authority (AAAR).

Frequently asked questions

What is an advance ruling?

A binding decision on a GST question, obtained before a transaction, from the AAR.

Is an advance ruling binding?

Yes, on the applicant and the concerned officer, for the question raised.

This content is for general guidance only and does not constitute professional advice. Tax law changes frequently — verify the current position and consult a qualified Chartered Accountant before acting. Last reviewed: June 2026.

Key Takeaways

  • AAR gives certainty on GST questions.
  • Binding on the applicant and the officer.
  • Appeal lies to the AAAR.
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