Centralised AAR for GST on card for uniform rulings
India is looking at creating a centralised Authority for Advance Rulings (AAR) for the goods and services tax (GST) after divergent rulings on identical issues
fuelled confusion over applicability and the rate of tax. A recent case in point being the divergent rulings by Karnataka and Maharashtra AARs on the issue of
solar projects. “We are looking at an issuebased central authority with officials from states and the Centre,” a top government official told ET. “If more than one
appeal is filed on the same issue in different jurisdictions it can be taken up by this body.” The AAR is a quasi-judicial body that allows assessees to get guidance
on their potential tax liabilities relating to any transaction beforehand. The rulings by the AAR are case-specific, but they have a persuasive impact on tax assessment
in cases of other firms under similar circumstances.
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