Tax Consultant

  Section 103 of CGST Act, 2017 – Applicability of Advance Ruling Act: Central Goods and Services Tax Act, 2017 Chapter: XVII – Advance Ruling Section Covered: Section 103 Effective From: 01st July 2017 🔎 Introduction Section 103 of the CGST Act, 2017 defines the binding nature and applicability of an advance ruling . While earlier sections deal with application, appeal and rectification, this provision clarifies: • On whom the advance ruling is binding • To what extent it applies • When it ceases to remain binding This section is crucial for understanding the legal effect of advance rulings. 📜 Bare Provision – Section 103 (Key Highlights) 1️⃣ An advance ruling pronounced by the Authority or the Appellate Authority shall be binding only: On the applicant who sought it; and On the concerned officer or jurisdictional officer in respect of the applicant. 2️⃣ The ruling shall be binding unless: The law, facts, or circumstances supporting the ruling have cha...

  Section 102 of CGST Act, 2017 – Rectification of Advance Ruling Act: Central Goods and Services Tax Act, 2017 Chapter: XVII – Advance Ruling Section Covered: Section 102 Effective From: 01st July 2017 🔎 Introduction Section 102 of the CGST Act, 2017 provides the power to rectify mistakes in an advance ruling order. This provision ensures that minor or apparent errors in: • Orders of Authority for Advance Ruling (AAR), or • Orders of Appellate Authority for Advance Ruling (AAAR) can be corrected without requiring fresh proceedings or appeal. 📜 Bare Provision – Section 102 (Key Highlights) The Authority or the Appellate Authority may amend its order: ✔ To rectify any error apparent on the face of the record ✔ Within a period of six months from the date of the order Such rectification may be: • Suo moto (on its own motion), or • When error is brought to its notice by the applicant, concerned officer, jurisdictional officer, or the Commissioner However, No ...

  appeal. Q7. Is written order mandatory? Yes. Q8. To whom is order communicated? Applicant, concerned officer, and jurisdictional officer. Q9. Can new issues be introduced in appeal? Generally limited to issues raised in original ruling. Q10. Why is Section 101 important? Because it provides final appellate determination in advance ruling system. 📝 Conclusion Section 101 of the CGST Act, 2017 governs the decision-making process of the Appellate Authority for Advance Ruling. It ensures time-bound disposal, mandates hearing of parties, and clearly defines the consequences where members agree or disagree. This provision strengthens the credibility and certainty of the Advance Ruling mechanism under GST law by providing a structured and balanced appellate framework.

  • Appeal must be filed in prescribed form. • Prescribed fee is payable by applicant. • No fee is required when appeal is filed by department. 📖 Practical Illustration Example 1 – Appeal by Taxpayer AAR rules that a product attracts 18% GST instead of 12%. The applicant disagrees. ➡ Appeal must be filed within 30 days before AAAR under Section 100. Example 2 – Appeal by Department AAR holds that certain supply is exempt from GST. Department believes ruling is legally incorrect. ➡ Jurisdictional officer files appeal within prescribed time. ⚖️ Judicial Interpretation of Section 100 Courts have emphasized that: • Time limit under Section 100 is mandatory. • Condonation cannot exceed additional 30 days. • AAAR cannot entertain appeal beyond statutory limit. High Courts have consistently held that statutory time limits must be strictly complied with in fiscal statutes. 🔄 Section 100 in Advance Ruling Mechanism Stage Provision Application Section 97 Procedure S...

  • The jurisdictional officer is aggrieved by the ruling of AAR, they may appeal before the Appellate Authority constituted under this section. 🏛 Composition of Appellate Authority (AAAR) Each State / UT has its own AAAR. The authority consists of: ✔ One Central Tax Member ✔ One State/UT Tax Member This ensures balanced representation of both tax administrations. 📌 Purpose of Section 99 The objective is to: • Provide appellate remedy • Ensure legal consistency • Correct errors of AAR • Strengthen taxpayer confidence Without Section 99, advance ruling would have been a single-stage mechanism. 🔄 Two-Tier Advance Ruling Mechanism Stage Authority First Level Authority for Advance Ruling (AAR) Second Level Appellate Authority for Advance Ruling (AAAR) Section 99 establishes the second level. 📖 Practical Illustration Example A company receives an unfavorable advance ruling from AAR regarding classification of goods. The company believes the ruling is incorr...

  Section 98 of CGST Act, 2017 – Procedure on Receipt of Application Act: Central Goods and Services Tax Act, 2017 Chapter: XVII – Advance Ruling Section Covered: Section 98 Effective From: 01st July 2017 🔎 Introduction Section 98 of the CGST Act, 2017 lays down the procedure to be followed by the Authority for Advance Ruling (AAR) after receiving an application under Section 97. This section ensures that applications are properly examined, admitted or rejected in accordance with law, and decided within a prescribed time limit. It safeguards both taxpayer rights and departmental interests. 📜 Bare Provision – Section 98 (Key Points) Upon receipt of an application: 1️⃣ The Authority shall forward a copy of the application to the concerned officer. 2️⃣ The Authority may call for relevant records from the concerned officer. 3️⃣ After examining the application and records, and after hearing the applicant and concerned officer, the Authority may either: Admit the ...

  Section 97 of CGST Act, 2017 – Application for Advance Ruling Act: Central Goods and Services Tax Act, 2017 Chapter: XVII – Advance Ruling Section Covered: Section 97 Effective From: 01st July 2017 🔎 Introduction Section 97 of the CGST Act, 2017 provides the procedure for making an application to the Authority for Advance Ruling (AAR). It specifies: • Who can apply • The manner of application • The questions on which advance ruling can be sought This section is crucial because it defines the jurisdictional limits of the Advance Ruling Authority. 📜 Bare Provision – Section 97 (1) Application An applicant desirous of obtaining an advance ruling may make an application in such form and manner and accompanied by such fee as may be prescribed, stating the question on which the advance ruling is sought. (2) Questions on Which Advance Ruling Can Be Sought The question on which advance ruling is sought shall be in respect of: (a) Classification of any goods or s...

  Section 96 of CGST Act, 2017 – Authority for Advance Ruling Act: Central Goods and Services Tax Act, 2017 Chapter: XVII – Advance Ruling Section Covered: Section 96 Effective From: 01st July 2017 🔎 Introduction Section 96 of the CGST Act, 2017 provides for the constitution of the Authority for Advance Ruling (AAR) under GST. This section lays the foundation for the Advance Ruling mechanism by formally establishing the authority that is empowered to issue rulings on specified GST matters. The objective is to provide clarity and certainty to taxpayers before or during transactions. 📜 Bare Provision – Section 96 Subject to the provisions of this Chapter, for the purposes of this Act, the Authority for Advance Ruling constituted under the provisions of a State Goods and Services Tax Act or Union Territory Goods and Services Tax Act shall be deemed to be the Authority for Advance Ruling in respect of that State or Union territory. ✅ Meaning in Simple Words Sectio...