GST What is the objective of having a mechanism of Advance Ruling?

Raju Choudhary

Staff member
Ans. The broad objective for setting up such an authority is to:

i. provide certainty in tax liability in advance in relation to an activity proposed to be undertaken by the applicant;
ii. attract Foreign Direct Investment (FDI);
iii. reduce litigation;
iv. pronounce ruling expeditiously in transparent and inexpensive manner.