Setting up of Board of Advance ruling- A step forward to prevent contradictory AAR rulings
The Central Government proposes to revamp the existing mechanism of Advance Ruling under GST by setting up of a centralizes authority, Board of Advance Ruling (BAR) in order to address the issues of contradictory Advance Rulings in different states. The plan seeks to set up BAR at a central level, operating from Delhi and Mumbai.
The BAR is expected to address the problem of contradictory rulings and ensure uniformity regarding applicability of the said taxes. The Finance Act, 2021 have already amendment the provisions in order to indicate the transition between Authority of Advance Rulings (AAR) to BAR, however the date for the functioning of BAR and replacing of AAR has not been notified yet.