GST Advisory Services
GST advisory gets the tax right before you invoice, buy or sign: the HSN or SAC code and rate, the credit you can claim, and IGST or CGST plus SGST. Where the law is unclear, we seek an advance ruling under Section 97 of the CGST Act, 2017, which binds the department on your case.
What it is
Filing GST returns is routine. Deciding what goes into them is not. A wrong rate, a blocked credit or the wrong type of tax can surface years later as a demand with interest and penalty. Advisory settles these questions before they become notices.
The rules sit in the CGST Act, 2017 (Sections 16 and 17 for input tax credit, Sections 95 to 106 for advance rulings) and the IGST Act, 2017 (Sections 10 to 13 for place of supply). Rates are notified product by product. Since 22 September 2025, after the 56th GST Council meeting, most goods and services fall into 5% or 18%, with 40% for a short list of luxury and sin goods.
Who it applies to
You make or trade goods
Anyone whose products could sit under two HSN codes, or whose rate changed in September 2025.
You sell services across states
Clients in several states or abroad, mixed supplies, works contracts or reverse-charge purchases: place of supply and credit rules decide the tax.
You are about to start something new
A new product line, a warehouse in another state or a restructuring. A GST view before the first invoice costs less than a correction after.
Why it matters
A wrong code costs 13 points
With most items at 5% or 18%, a wrong code means 13 points on every invoice. Short-paid tax returns as a demand under Section 73 or 74A, with interest under Section 50.
Missed credit is lost cash
Every rupee of eligible credit you miss is extra cost. Every rupee wrongly claimed is a future demand.
Wrong tax is not adjusted
If you pay CGST and SGST where IGST was due, you pay the correct tax again and claim the wrong one back as a GST refund. It is not simply set off.
Four questions we settle
| Area | What we look at | Law |
|---|---|---|
| Classification and rate | HSN or SAC code from the product’s composition and use, the rate notification, any exemption | Customs Tariff headings; CGST rate notifications (Notification 09/2025 onwards from 22 September 2025) |
| Input tax credit | Eligibility, blocked credits, GSTR-2B matching, 180-day payment rule, time limit | Sections 16 and 17, CGST Act; Rule 37 |
| Place of supply | Whether a supply is inter-state (IGST) or intra-state (CGST plus SGST), including exports | Sections 10 to 13, IGST Act |
| Advance ruling | Whether to apply, how to frame the question, drafting and hearing | Sections 95 to 106, CGST Act; Form GST ARA-01 |
Three credit rules catch most businesses. Section 16(2)(aa) allows credit only when the supplier’s invoice appears in your GSTR-2B. Under the second proviso to Section 16(2) and Rule 37, unpaid suppliers after 180 days mean reversing the credit with interest, until you pay. And Section 16(4) sets the outer limit: 30 November after the end of the financial year, or the date you file the annual return, if earlier.
Here is the catch: Section 17(5) blocks credit outright on certain items, such as most motor vehicles, food and beverages, and works contracts for building immovable property. A Ballabgarh manufacturer putting up a new shed cannot claim the GST on the contractor’s bills, however clean the paperwork.
Documents required
For classification
- Product description, composition and technical specifications
- Catalogue, brochure or photographs
- How the product is used and sold
For credit and place of supply
- Purchase and sales registers with GSTINs
- GSTR-2B, GSTR-3B and GSTR-1 for the period
- Contracts showing where goods are delivered or services received
For an advance ruling
- Your GST registration certificate, or PAN if not yet registered
- A clear statement of the facts and the transaction
- Your own view of the answer, with supporting reasons
How it works
Map the transaction
We start with who supplies what, to whom, from where and on what terms. In practice, most GST mistakes start with a wrong assumption about the facts. Take a Faridabad fabricator who bills a Delhi buyer but ships to that buyer’s site in Uttar Pradesh. Under Section 10(1)(b) of the IGST Act, the place of supply is the Delhi buyer’s principal place of business, so the invoice carries IGST.
Test the facts against the law
We check the tariff heading, the rate notification and the credit and place-of-supply rules, then the rulings on the same point.
Put the answer in writing
You get a short note with the answer, the reasons, the risk and what to change on invoices, in the ERP or in your GST return filing.
Apply for a ruling if the law is open
If the question is open and the amounts are large, we draft Form GST ARA-01, file it on the GST portal and represent you at the hearing before the Authority for Advance Ruling.
Timelines
Claim credit by 30 November
Section 16(4) allows a year’s credit only until 30 November of the next year, or the annual return date if earlier. For 2025-26: 30 November 2026.
Advance ruling within 90 days
Section 98(6) requires the Authority for Advance Ruling to pronounce its ruling within 90 days of receiving the application.
Appeal within 30 days
Under Section 100, an appeal against the ruling goes to the Appellate Authority for Advance Ruling in Form GST ARA-02 within 30 days of communication, extendable by another 30 days for sufficient cause.
When you need it
Before you launch or sign
A new product, a new state or a large contract with mixed supplies. Settle the rate and place of supply first.
When the department starts asking
An ASMT-10 scrutiny notice or an audit query on classification or credit. A sound opinion becomes the base of your reply to the GST notice.
When credit keeps getting stuck
An inverted rate structure, credits reversed for unpaid suppliers, or gaps between your books and GSTR-2B.
Frequently asked questions
What questions can be asked in a GST advance ruling?
Section 97(2) of the CGST Act allows seven kinds of question: classification of goods or services, applicability of a notification, time and value of supply, admissibility of input tax credit, liability to pay tax, whether registration is required, and whether an activity amounts to a supply. Fit one of these, and you get a binding answer before you act.
Can I get an advance ruling on place of supply?
Usually not. Place of supply is not a head listed in Section 97(2), and Authorities have often declined to decide it directly. Instead, we give you a written opinion based on Sections 10 to 13 of the IGST Act and relevant rulings. Where the issue changes your tax liability or credit, the question can sometimes be framed under those heads instead.
What is the fee for an advance ruling?
The fee for Form GST ARA-01 is ₹5,000 under the CGST Act and ₹5,000 under the SGST Act, so ₹10,000 in total. An appeal to the Appellate Authority in Form GST ARA-02 costs ₹10,000 under each Act, ₹20,000 in total. On a high-value question, that is a small price for certainty.
Who is bound by an advance ruling?
Under Section 103, a ruling binds only the applicant and the jurisdictional tax officer for that applicant. It does not bind other taxpayers, and it stays binding until the law or the facts change. Under Section 104, it becomes void if it was obtained by fraud, suppression of material facts or misrepresentation, so we state the facts fully.
When will an advance ruling application be rejected?
The Authority will not admit it if the same question is already pending or decided in any proceedings involving you under the Act. So apply before a notice or audit opens on that issue. A question outside Section 97(2) is also rejected. We check both points before drafting, so the application is admissible.
What is the last date to claim input tax credit for 2025-26?
30 November 2026, under Section 16(4), or the date you file your GSTR-9 annual return for 2025-26, if that is earlier. After this date, fresh credit on 2025-26 invoices is lost. Credit you claimed in time but reversed for non-payment under Rule 37 can be taken again once you pay the supplier. A quick GSTR-2B check in October avoids losing credit.
What happens if I do not pay my supplier within 180 days?
You must reverse the input tax credit on that invoice, with interest, under the second proviso to Section 16(2) and Rule 37. The 180 days run from the invoice date. Once you pay the supplier, you can claim the credit again, and Rule 37 says the Section 16(4) time limit does not stop that re-claim. Tracking supplier ageing monthly keeps reversals small.
How did the September 2025 rate changes affect classification?
From 22 September 2025, most goods and services moved into two main slabs, 5% and 18%, with 40% for luxury and sin goods. Many 12% items moved to 5%, and many 28% items to 18%. With a wider gap between slabs, a classification error now costs more. If your products straddle two headings, check them again against the new notifications.
Is GST advisory useful for a small business?
Yes, especially when you deal in products with unclear classification or supply across states. A Faridabad trader selling into Delhi, Uttar Pradesh and Haryana makes a place-of-supply call on every invoice. One written opinion, set up correctly in the billing software, settles it for every invoice that follows. The cost is usually far below a single demand notice.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
There is no government fee for an opinion. Advance ruling fees are fixed by Rules 104 and 106 of the CGST Rules:
| Application | Form | Government fee |
|---|---|---|
| Advance ruling | GST ARA-01 | ₹5,000 CGST + ₹5,000 SGST = ₹10,000 |
| Appeal by applicant | GST ARA-02 | ₹10,000 CGST + ₹10,000 SGST = ₹20,000 |
Ready to begin?
Send us the product, contract or credit question, and we will tell you where you stand before you invoice.