Section 108 – Powers of Revisional Authority, a supervisory corrective provision

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Section 108 of CGST Act, 2017 – Powers of Revisional Authority

Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant

1. Objective of Section 108

Section 108 empowers the Revisional Authority (Commissioner or authorised officer) to revise orders passed by subordinate adjudicating authorities where such orders are erroneous and prejudicial to the interest of revenue.

It acts as a supervisory corrective mechanism distinct from the appellate process.

2. Statutory Provision – Section 108 (Overview)

Section 108(1):
Subject to the provisions of this Act, the Revisional Authority may, on his own motion or upon information received by him, call for and examine the record of any proceedings, and if he considers that any decision or order passed under this Act by any officer subordinate to him is erroneous in so far as it is prejudicial to the interest of revenue, he may pass such order thereon as he thinks just and proper, after giving the person concerned an opportunity of being heard.

Section 108(2):
The Revisional Authority shall not exercise power of revision in cases where:

  • The order has been appealed against
  • The period for appeal has not yet expired
  • The order has been taken up for revision earlier

3. Who Is the Revisional Authority?

The Revisional Authority is:

  • The Commissioner, or
  • An officer authorised by the Commissioner

The authority must be superior to the adjudicating officer whose order is under revision.

4. Conditions for Exercise of Revision Power

For invoking Section 108, both conditions must exist simultaneously:

  • The order is erroneous, and
  • The order is prejudicial to the interest of revenue

Absence of either condition invalidates the revision.

5. Meaning of “Erroneous and Prejudicial”

An order may be considered erroneous if:

  • Passed without proper inquiry
  • Based on incorrect interpretation of law
  • Ignoring binding judicial precedents

It is prejudicial to revenue if:

  • Tax demand is wrongly dropped
  • Penalty or interest is incorrectly waived

6. Opportunity of Being Heard

Before passing a revisional order:

  • Show cause notice must be issued
  • Reasonable opportunity of hearing must be given

Violation of natural justice renders the revisional order invalid.

7. Time Limit for Revision

Revisional power must be exercised:

  • Within 3 years from the date of the order sought to be revised

Orders passed beyond limitation are unsustainable.

8. Bar on Revision – Important Restrictions

Revision under Section 108 is not permissible if:

  • Appeal is pending or decided on the same matter
  • Time for filing appeal has not expired
  • Order is already subject to revision

This avoids parallel proceedings.

9. Section 108 vs Section 107

  • Section 107: Appeal by aggrieved person
  • Section 108: Revision by Commissioner

Appeal is a right of party; revision is a supervisory power.

10. Practical Scenarios

  • Adjudicating officer drops demand without inquiry
  • Penalty wrongly waived contrary to law
  • Incorrect refund sanctioned

In such cases, revision under Section 108 may be invoked.

11. Judicial Principles

Courts have consistently held that:

  • Revision is not a substitute for appeal
  • Commissioner must record clear reasons
  • Mechanical revision is impermissible

12. Related Provisions

13. Professional Insight

Section 108 is a revenue-protective provision, but it is tightly controlled by conditions and limitation. Taxpayers should always examine whether both “error” and “prejudice” are clearly established, as vague or mechanical revision is vulnerable to challenge.

Disclaimer: This article is prepared based on the CGST Act, CGST Rules, notifications and prevailing legal position as applicable till date. Exercise of revisional powers is subject to strict judicial scrutiny.

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