Drafting the ARA explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Advance rulings are decided on the facts stated. Which means the application is not a covering note for the argument — it is the case.
Rule 104(1): the application is made on the common portal in FORM GST ARA-01, with a fee of five thousand rupees under s.49. Rule 104(2): the application, the verification and all relevant documents shall be signed in the manner specified in Rule 26. The ruling answers the question specified in the application (s.98(4)) on the facts as stated, and a ruling obtained by suppression of material facts or misrepresentation is void ab initio under s.104. So the drafting discipline is: complete facts, primary documents, precise questions.
The structure that works
1. The applicant. Legal name, GSTIN or the fact of being desirous of registration under s.95(c), constitution, principal place of business, and the nature of the business in two or three sentences.
2. The transaction. What is actually supplied, to whom, on what terms, at what price, under which contract, with which delivery and payment mechanics. Written as a factual narrative, in the present or proposed tense, without characterisation.
3. Whether it is undertaken or proposed. Section 95(a) requires the supply to be being undertaken or proposed to be undertaken by the applicant. Say which, plainly, and give the timeline for a proposed transaction.
4. The questions. Numbered, each anchored to a specific clause of s.97(2), each self-contained, each capable of a yes-or-no or a single-heading answer.
5. The applicant's interpretation. FORM GST ARA-01 asks for it, and it should be given — the provisions, the notification entries, the circulars, and the reasoning. This is the argument, kept separate from the facts.
6. The declaration on pendency. That the question is not already pending or decided in any proceedings in the applicant's case — the first proviso to s.98(2). State it, having checked it. The admission bar →
7. The annexures. Listed and paginated.
The facts: what "material" means in practice
Section 104 voids a ruling obtained by suppression of material facts. A fact is material if it could affect the answer. Applied to the common question types:
For a classification question (clause a): composition and constituent materials with proportions; manufacturing process; function and end use; how it is marketed and described in literature and on the packaging; the tariff heading claimed and the competing heading; any BIS, FSSAI or other regulatory classification; the treatment in customs, if imported.
For a notification-applicability question (clause b): every condition in the entry, and the applicant's position on each — including any the applicant does not satisfy.
For a valuation question (clause c): the price, every component of consideration including non-monetary, discounts and their terms, the relationship between the parties, and any linked transactions.
For a credit question (clause d): the nature of the inward supply, its use, whether it is capitalised, and whether any s.17(5) clause is arguably engaged — including the one the applicant says does not apply.
For a supply question (clause g): whether there is consideration; whether the parties are related or distinct persons; the contractual obligation, if any; and how the amount is recorded in the books.
The rule of thumb: if a fact would change the answer, state it. If you would rather the Authority did not know it, that is precisely the fact that must be disclosed — because a ruling that survives it is worth something, and one that depends on its omission is worth less than nothing. Section 104 →
The questions: framing that survives
One clause per question. "Whether the product described at paragraph 4 is classifiable under HSN 3004" is a clause (a) question. "Whether the applicant is entitled to input tax credit of tax paid on the inward supply described at paragraph 7" is a clause (d) question. Both in one sentence produces a partial answer.
Use the clause's own words. Classification of goods or services; applicability of a notification; determination of time and value; admissibility of input tax credit; determination of the liability to pay tax; whether the applicant is required to be registered; whether a particular thing done amounts to or results in a supply.
Refer to a paragraph of the facts. "The product described at paragraph 4" rather than restating the description in the question — so that the answer attaches to the full factual description.
Ask the alternative. Where classification is disputed between two headings, ask which of the two applies rather than only whether the preferred one does. An answer of "no" to a single-heading question leaves you no better off.
Do not ask what you cannot be told. Place of supply, export status, refund entitlement, another person's liability, the validity of a notification. What a ruling cannot decide →
The annexures
The Authority decides on what is before it, and it has civil court powers of discovery and production under s.105(1). Annex the primary material rather than describing it:
- the contract or purchase order, complete — not an extract;
- the product specification and technical literature;
- photographs and packaging, for a classification question;
- the price schedule and any discount or incentive scheme;
- the accounting treatment and a relevant ledger extract;
- regulatory approvals and classifications under other laws;
- any customs classification for an imported product;
- an organisation chart, where distinct persons or related parties are involved.
Filing mechanics
Rule 104(1) — on the common portal, in ARA-01, with ₹5,000 under the CGST Act deposited in the manner specified in s.49, and a matching fee under the State Act.
Rule 104(2) — the application, the verification and all relevant documents signed in the manner specified in Rule 26, that is, with a digital signature certificate or e-signature as applicable to the class of person.
Rule 107A — manual filing is available notwithstanding the electronic filing requirements, in the forms appended to the rules.
After filing: s.98(1) sends a copy to the concerned officer, who may be called on to furnish records. Expect the issue to be on the department's file from that point, and expect the officer to be heard at the admission stage and again under s.98(4).
Key takeaways
- The ruling answers the question specified in the application on the facts as stated.
- State every material fact — including the unhelpful ones; s.104 voids a ruling obtained by suppression.
- One clause of s.97(2) per question, in the clause's own words, referring to a paragraph of the facts.
- Ask the alternative where classification lies between two headings.
- Annex the primary documents; the Authority has discovery and production powers under s.105.
- ARA-01 on the portal, ₹5,000, signed as Rule 26 requires; Rule 107A permits manual filing.
Read next
- Section 97(2): The Seven Questions You Can Actually Ask
- Section 104: When an Advance Ruling Becomes Void Ab Initio
- Section 105: Civil Court Powers and the Judicial Proceeding
- Advance Ruling Application (ARA-01) — Draft and Guide
Disclaimer: Positions stated as on 5 September 2026, based on the CGST Act and Rules as amended to 31 March 2026 (ICAI Bare Law, 12th edition).