New Delhi, Sep 9 (TIWN) The Centre proposes to revamp the advance ruling mechanism under the GST by setting up a centralised authority to address the issue of contradictory orders passed by the Authority for Advance Rulings (AAR) in different states.

Sources said that though the plan is to replace the AARs with a BAR (Board for Advance Ruling) located at the central level with operational centres in Delhi and Mumbai, the state-level AAR mechanism may continue for some time with the BAR coming into play in matters where contradictory orders on applicability and quantum of tax have been given on same or similar items.  A case in point of confusion created by AARs is a recent ruling of the Karnataka AAR that said an executive director of a company is not liable to pay GST, as being an employee of the company, his work does not quality as supply under the CGST Act.