AAR Rejects GST Advance Ruling as Liability Already Adjudicated in Scrutiny

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  • Last Updated on 5 March, 2026

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GST advance ruling

Case Details: Murali Pharmacy, In re - [2026] 183 taxmann.com 703 (AAR - TAMILNADU)

Judiciary and Counsel Details

  • C. Thiyagarajan & B. Suseel Kumar, Member

Facts of the Case

The applicant, a proprietorship pharmacy under GST, sought clarity on GST liability. It submitted that it supplied medicines and medical items and continued registration after the threshold for goods was enhanced, claiming exemption. Prior to the application, the Department of Revenue initiated scrutiny of turnover reported in GSTR-1 and issued ASMT-10 seeking an explanation for non-payment of GST. The scrutiny concluded with DRC-07 orders confirming demands for all years. The matter was accordingly placed before the Authority for Advance Ruling (AAR).

AAR Held

The AAR held that the first proviso to Section 98(2) of the CGST Act, read with Section 97, bars admission of an application where the same question is pending or has already been adjudicated. It was observed that the scrutiny and assessment proceedings, which culminated in DRC-07 orders confirming GST demands, had already addressed the identical question of liability under the claimed threshold exemption. The AAR noted that, since the proceedings had commenced and were adjudicated before the filing of the advance ruling application, the application was not maintainable.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied