The Kerala High Court cleared that the Authority for Advance Rulings (AAR) can set the place of supply under the GST regime. The AARs were not taking this decision up to now saying that it was beyond their jurisdiction but now after the decision taken by KHC, the AARs are given full authority over it.
Place of Supply rules helps in determining whether a said transaction is inter-state, intra-state or export-based particularly in the case od GST as this tax is destination-based. Now the place of supply determined by the AARs will help in deciding exemptions and the taxes levy of State GST, Central GST 
The decision was made after an exporter Niraj Bagri, a partner in Dhruva Advisors, asked AARs to determine the place of supply so that he can get the benefit of exemption from GST but AARs refused to do so stating that they do not have the authority to do so. Niraj said that the Indian unit provided IT enabled services to the parent company in the US but because of the refusal the place of supply could not be determined and he could not take the benefit of exports too.
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Dhruva Advisors then took the matter in front of the High Court where this decision was made stating that under Section 97 of CGST, the AARs are authorized to determine the place of supply for GST and then reverted the case to the Kerala-based AAR where all this happened in the first place.
“In this case, the court has settled one of the key issues on maintainability of advance rulings wherein the question involved the determination of place of supply,” said Bagri. The verdict also declared that any questions related to the tax liabilities of any individual will be answered by the AARs.
