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23

ADVANCE RULING
For the sake of brevity, the terms “Authority for Advanced Ruling”, “Appellate
Authority for Advance Ruling”, have been referred to as AAR and AAAR
respectively in this Chapter. The section numbers referred to in the chapter
pertain to CGST Act, unless otherwise specified.

LEARNING OUTCOMES

After studying this chapter, you would be able to:


 comprehend and explain the terms-advance ruling, applicant,
application, authority and appellate authority for the purpose
of advance ruling with reference to the statutory definitions
of such terms.
 understand and describe the various aspects relating to
procedure to be followed for filing an application for advance
ruling and apply it in practical scenario.
 list the matters on which advance ruling can be sought.
 gain knowledge regarding the applicability of advance ruling.
 identify and appreciate the powers of Authority and
Appellate Authority.

© The Institute of Chartered Accountants of India


23.2 GOODS AND SERVICES TAX

1. INTRODUCTION

What is the role of


Advance Ruling?

An advance ruling helps the applicant in planning his activities which are liable
for payment of GST, well in advance. It also brings certainty in determining the
tax liability, as the ruling given by the Authority for Advance Ruling is binding
on the applicant as well as concerned Government authorities. Further, it helps
in avoiding long drawn and expensive litigation at a later date. Seeking an
advance ruling is inexpensive and the procedure is simple and expeditious.
It thus provides certainty and transparency to a taxpayer with respect to an issue
which may potentially cause a dispute with the tax administration. A legally
constituted body called Authority for Advance Ruling (AAR) can give a binding
ruling to an applicant who is a registered taxable person or is desirous to be
registered. The advance ruling given by the Authority can be appealed before
an Appellate authority for Advance Ruling (AAAR). There are time lines
prescribed for passing an order by AAR and by AAAR.
The broad objectives for setting up a mechanism of Advance Ruling are:
 provide certainty in tax liability in advance in relation to an activity
proposed to be undertaken by the applicant;
 attract Foreign Direct Investment (FDI) by ensuring certainty in taxation
aspects of transactions
 reduce litigation
 pronounce ruling expeditiously in a transparent and inexpensive manner
Chapter XVII – Advance Ruling [Sections 95 to 106] of the CGST Act and
Chapter XII – Advance Ruling [Rules 103 to 107A], stipulate the provisions
relating to advance ruling. State GST laws also prescribe identical provisions in
relation to advance ruling.

Provisions of advance ruling under CGST Act have also been made applicable
to IGST Act vide section 20 of the IGST Act.

© The Institute of Chartered Accountants of India


ADVANCE RULING 23.3

2. RELEVANT DEFINITIONS

 Advance ruling means a decision provided by the Authority or the


Appellate Authority to an applicant on matters or on questions specified
in sub-section (2) of section 97 or sub-section (1) of section 100, in relation
to the supply of goods or services or both being undertaken or proposed
to be undertaken by the applicant; [Section 95(a)].
 Appellate Authority means the Appellate Authority for Advance Ruling
referred to in section 99. [Section 95(b)].
 Applicant means any person registered or desirous of obtaining
registration under this Act; [Section 95(c)].
 Application means an application made to the Authority under sub-
section (1) of section 97; [Section 95(d)].
 Authority means the Authority for Advance Ruling referred to in section
96; [Section 95(e)].

3. QUESTIONS FOR WHICH ADVANCE RULING


CAN BE SOUGHT [SECTION 97]
The definition of advance ruling given under the Act is a broad one. Under GST,
advance ruling can be obtained on a proposed transaction as well as a transaction
already undertaken by the appellant.
Advance Ruling can be sought for the following questions:-
(a) classification of any goods or services or both
(b) applicability of a notification issued under the provisions of CGST Act
(c) determination of time and value of supply of goods or services or both
(d) admissibility of input tax credit of tax paid or deemed to have been paid
(e) determination of the liability to pay tax on any goods or services or both

© The Institute of Chartered Accountants of India


23.4 GOODS AND SERVICES TAX

(f) whether applicant is required to be registered


(g) whether any particular thing done by the applicant with respect to any goods
or services or both amounts to or results in a supply of goods or services or
both, within the meaning of that term.

Note: Matters which cannot be questioned before AAR are:-


 Question already pending in any proceedings in the case of applicant
 Question already decided in any proceedings in the case of an applicant

4. AUTHORITY FOR ADVANCE RULING (AAR)


AND APPELLATE AUTHORITY FOR ADVANCE
RULING (AAAR) [SECTION 96 AND 99]
 The Authority for advance ruling constituted under the provisions of 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 under the CGST Act, 2017 also.
 The Government shall appoint officers not below the rank of Joint
Commissioner as member of the Authority for Advance Ruling. [Rule 103]
 The Appellate Authority for Advance Ruling constituted under the provisions
of a State Goods and Services Tax Act or a Union Territory Goods and Services
Tax Act shall be deemed to be the Appellate Authority in respect of that State
or Union territory under the CGST Act, 2017 also.
 Thus, it can be seen that both the Authority for Advance Ruling (AAR) & the
Appellate Authority for Advance Ruling (AAAR) is constituted under the
respective State/Union Territory Act and not the Central Act. This would
mean that the ruling given by the AAR & AAAR will be applicable only within
the jurisdiction of the concerned state or union territory. It is also for this
reason that questions on determination of place of supply cannot be raised
with the AAR or AAAR.

© The Institute of Chartered Accountants of India


ADVANCE RULING 23.5

5. PROCEDURE FOR OBTAINING ADVANCE


RULING [SECTION 98]
 The applicant desirous of obtaining advance ruling should make application
to AAR in a prescribed form and manner and shall be accompanied by a fee
of five thousand rupees.
 Upon receipt of an application, the AAR shall send a copy of application to
the c o n c e r n e d officer and, if necessary, call for all relevant records from
the concerned officer. The relevant records called for by AAR shall be returned
to the Concerned officer, as soon as possible
 The AAR may then examine the application along with the records and may
also hear the applicant. Thereafter he will pass an order either admitting or
rejecting the application.
 Application for advance ruling will not be admitted in cases where the
question raised in the application is already pending or decided in any
proceedings in the case of an applicant under any of the provisions of this
Act.
 If the application is rejected, it should be by way of a speaking order giving
the reasons for rejection.
 If the application is admitted, the AAR shall pronounce its ruling within 90
days of receipt of application. Before giving its ruling, it shall examine the
application and any further material furnished by the applicant or by the
concerned departmental officer.
 Before giving the ruling, AAR must hear the applicant or his authorized
representative as well as the jurisdictional officers of CGST/SGST.
 If there is a difference of opinion between the two members of AAR, they
shall refer the point or points on which they differ to the AAAR for hearing
the issue. If the members of AAAR are also unable to come to a common
conclusion in regard to the point(s) referred to them by AAR, then it shall be
deemed that no advance ruling can be given in respect of the question on
which difference persists at the level of AAAR.
 A copy of the advance ruling duly signed by members and certified in
prescribed manner shall be sent to the applicant, the concerned officer and
the jurisdictional officer.

© The Institute of Chartered Accountants of India


23.6 GOODS AND SERVICES TAX

6. APPEALS AGAINST ORDER OF AAR TO THE


APPELLATE AUTHORITY [SECTION 100 AND 101]
 If the applicant is aggrieved with the finding of the AAR, he can file an appeal
with AAAR. Similarly, if the concerned or jurisdictional officer of CGST/SGST
does not agree with the finding of AAR, he can also file an appeal with AAAR.
 In normal circumstances, the concerned officer will be the officer in whose
jurisdiction the applicant is located. Thus, it can be seen that a decision of
the Appellate authority is also treated as an advance ruling.
 Any appeal must be filed within 30 days from the receipt of the advance
ruling. The Appellate Authority may allow for an additional 30 days for filing
an appeal, if it is satisfied that there was a sufficient cause for delay in
presenting the appeal.
 The appeal has to be in the prescribed form and has to be verified in the
prescribed manner. An appeal has to be filed by the applicant along with fee
of ` 10,000/-. However, if the concerned officer or jurisdictional officer is
aggrieved by the decision of AAR, then no fee is required to be paid. “
 The Appellate Authority must pass an order after hearing the parties to the
appeal within a period of 90 days of the filing of an appeal.
 If members of AAAR differ on any point referred to in appeal, it shall be
deemed that no advance ruling is issued in respect of the question under
appeal.
 The said authority can either confirm or modify the ruling appealed against.
 A copy of the advance ruling pronounced by the Appellate Authority should
be signed by the members, certified in the prescribed manner, and
communicated to the applicant, the concerned officer, the jurisdictional
officers and to the Authority.

7. RECTIFICATION OF MISTAKES [SECTION 102]


 The law gives power to AAR and AAAR to amend their order to rectify any
mistake apparent from the record within a period of 6 months from the date
of the order.
 Such mistake may be noticed by the authority on its own accord or may be
brought to its notice by the applicant or the concerned or the jurisdictional officer.

© The Institute of Chartered Accountants of India


ADVANCE RULING 23.7

 If a rectification has the effect of enhancing the tax liability or reducing the
quantum of input tax credit, the applicant must be heard before the order is
passed.

8. APPLICABILITY OF ADVANCE RULING


[SECTION 103]
An advance ruling pronounced by AAR or AAAR shall be binding only on the
applicant and on the concerned officer or the jurisdictional officer in respect of the
applicant. This clearly means that an advance ruling is not applicable to similarly
placed other taxable persons in the State. It is only limited to the person who has
applied for an advance ruling.
The law does not provide for a fixed time period for which the ruling shall apply.
Instead, it has been provided that advance ruling shall be binding till the period
when the law, facts or circumstances supporting the original advance ruling have
not changed.

9. ADVANCE RULING TO BE VOID IN CERTAIN


CIRCUMSTANCES [SECTION 104]
 Section 104 states the circumstances under which the ruling would be
considered as void and hence would lose its binding value.
 If the Authorities (AAR and Appellate Authority) find that the advance ruling
pronounced has been obtained by the applicant/appellant by fraud or
suppression of material facts or misrepresentation of facts, it may, by order,
declare such ruling to be void ab-initio.
 Consequently, all the provisions of the CGST Act shall apply to the applicant
as if such advance ruling had never been made (but excluding the period
when advance ruling was given and up to the period when the order declaring
it to be void is issued).
 An order declaring advance ruling to be void can be passed only after hearing
the applicant/ appellant.
 A copy of the order so made shall be sent to the applicant, the concerned
officers and the jurisdictional officer.

© The Institute of Chartered Accountants of India


23.8 GOODS AND SERVICES TAX

10. POWERS AND PROCEDURE OF AAR AND


AAAR [SECTION 105 AND 106]
 Both the AAR and AAAR are vested with the powers of a civil court under
Code of Civil Procedure, 1908, for discovery and inspection, enforcing the
attendance of a person and examining him on oath, issuing commissions and
compelling production of books of account and other records.
 Both the authorities are deemed to be a civil court for the purposes of section
195 of the Code of Criminal Procedure, 1973. Both the authorities are
however not treated as civil court for the purpose of Chapter XXVI of the
Code of Criminal Procedure, 1973.
 Any proceeding before the authority shall be deemed to be judicial
proceeding under section 193 and 228 and for the purpose of section 196, of
the Indian Penal Code, 1860. The AAR and AAAR also have the power to
regulate their own procedure.

TEST YOUR KNOWLEDGE


1. Which are the questions for which advance ruling can be sought?
2. What is the objective of having a mechanism of Advance Ruling?
3. To whom will the Advance Ruling be applicable?
4. What is the time period for applicability of Advance Ruling?
5. Can an advance ruling given be nullified?
6. Ranjan intends to start selling certain goods in Delhi. However, he is not able
to determine (i) the classification of the goods proposed to be supplied by him
[as the classification of said goods has been contentious] and (ii) the place of
supply if he supplies said goods from Delhi to buyers in U.S.
Ranjan’s tax advisor has advised him to apply for the advance ruling in respect
of these issues. He told Ranjan that the advance ruling would bring him
certainty and transparency in respect of the said issues and would avoid
litigation later. Ranjan agreed with his view, but has some apprehensions.
In view of the information given above, you are required to advise Ranjan with
respect to following:
(i) The tax advisor asks Ranjan to get registered under GST law before
applying for the advance ruling as only a registered person can apply for
the same. Whether Ranjan needs to get registered?

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ADVANCE RULING 23.9

(ii) Ranjan is apprehensive that if at all advance ruling is permitted to be


sought, he has to seek it every year. Whether Ranjan’s apprehension is
correct?
(iii) The tax advisor is of the view that the order of Authority for Advance
Ruling (AAR) is final and is not appealable. Whether the tax advisor’s view
is correct?
(iv) Sambhav - Ranjan’s friend - is a supplier registered in Delhi. He is
engaged in supply of the goods, which Ranjan proposes to supply at the
same commercial level that Ranjan proposes to adopt.
He intends to apply the classification of the goods as decided in the advance
ruling order to be obtained by Ranjan, to the goods supplied by him in Delhi.
Whether Sambhav can do so?
7. Briefly explain the procedure to be followed by the Authority for Advance Ruling
on receipt of the application for Advance Ruling under section 98.
8. Briefly explain whether an appeal could be filed before the Appellate Authority
against order of Authority for Advance Ruling (AAR), with reference to
sections 100 and 101.
9. Discuss briefly provisions of CGST Act, 2017 regarding questions for which
advance ruling can be sought.

ANSWERS
1. Advance Ruling can be sought for the following questions:
(a) classification of any goods or services or both;
(b) applicability of a notification issued under provisions of the GST Act(s);
(c) determination of time and value of supply of goods or services or both;
(d) admissibility of input tax credit of tax paid or deemed to have been paid;
(e) determination of the liability to pay tax on any goods or services under the Act;
(f) whether applicant is required to be registered under the Act;
(g) whether any particular thing done by the applicant with respect to any
goods or services amounts to or results in a supply of goods or services,
within the meaning of that term.
2. The broad objective for setting up such an authority is to:
(i) provide certainty in tax liability in advance in relation to an activity being
undertaken or proposed to beundertaken by the applicant;

© The Institute of Chartered Accountants of India


23.10 GOODS AND SERVICES TAX

(ii) helps taxpayer in financial planning and making new investments


(iii) attract Foreign Direct Investment (FDI);
(iv) reduce litigation;
(v) pronounce ruling expeditiously in transparent and inexpensive manner
3. The advance rulings are given in personem and not in rem, that is, not to the
whole world and therefore, rulings cannot apply to other similar cases.
Section 103 provides that an advance ruling pronounced by AAR or AAAR
shall be binding only on the applicant who sought it in respect of any matter
referred to in section 97(2) and on the jurisdictional tax authority of the
applicant. This clearly means that an advance ruling is not applicable to
similarly placed taxable persons in the State. It is only limited to the person
who has applied for an advance ruling.
4. The law does not provide for a fixed time period for which the ruling shall
apply. Instead, in section 103(2), it is provided that advance ruling shall be
binding till the period when the law, facts or circumstances supporting the
original advance ruling have changed. Thus, a ruling shall continue to be in
force so long as the transaction continues and so long as there is no change
in law, facts or circumstances.
5. Section 104(1) provides that an advance ruling shall be held to be ab initio
void if the AAR or AAAR finds that the advance ruling was obtained by the
applicant by fraud or suppression of material facts or misrepresentation of
facts. In such a situation, all the provisions of the GST Act(s) shall apply to the
applicant as if such advance ruling had never been made (but excluding the
period when advance ruling was given and up to the period when the order
declaring it to be void is issued). An order declaring advance ruling to be void
can be passed only after hearing the applicant.
6. (i) Advance ruling under GST can be sought by a registered person or a person
desirous of obtaining registration under GST law [Section 95(c)]. Therefore,
it is not mandatory for a person seeking advance ruling to be registered.
(ii) Section 103(2) stipulates that the advance ruling shall be binding unless the
law, facts or circumstances supporting the original advance ruling have
changed. Therefore, once Ranjan has sought the advance ruling with respect
to an eligible matter/question, it will be binding till the time the law, facts
and circumstances supporting the original advance ruling remain same.
(iii) No, the tax advisor’s view is not correct. As per section 100, if the applicant
is aggrieved with the finding of the AAR, he can file an appeal with

© The Institute of Chartered Accountants of India


ADVANCE RULING 23.11

Appellate Authority for Advance Ruling (AAAR). Similarly, if the concerned/


jurisdictional officer of CGST/SGST does not agree with the findings of
AAR, he can also file an appeal with AAAR.
Such appeal must be filed within 30 days from the date on which the ruling
sought to be appealed against is communicated. The Appellate Authority
may allow additional 30 days for filing the appeal, if it is satisfied that there
was a sufficient cause for delay in presenting the appeal.
(iv) Section 103 provides that an advance ruling pronounced by AAR is binding
only on the applicant who had sought it and on the concerned officer or the
jurisdictional officer in respect of the applicant. This implies that an advance
ruling is not applicable to similarly placed other taxable persons in the State.
It is only limited to the person who has applied for an advance ruling.
Thus, Sambhav will not be able to apply the classification of the goods that
will be decided in the advance ruling order to be obtained by Ranjan, to
the goods supplied by him in Delhi.
7. The procedure to be followed by the Authority for Advance Ruling (AAR) on
receipt of the application for advance ruling under section 98 is as under:-
1. Upon receipt of an application, the AAR shall send a copy of application
to the officer in whose jurisdiction the applicant falls and call for all
relevant records.
2. The AAR may then examine the application along with the records and
may also hear the applicant. Thereafter he will pass an order either
admitting or rejecting the application.
3. Application for advance ruling will not be admitted in cases where the question
raised in the application is already pending or decided in any proceedings in
the case of an applicant under any of the provisions of this Act.
4. If the application is rejected, it should be by way of a speaking order
giving the reasons for rejection and only after giving an opportunity of
being heard to the applicant.
5. If the application is admitted, the AAR shall pronounce its ruling on the
question specified in the application. Before giving its ruling, it shall
examine the application and any further material furnished by the
applicant or by the concerned departmental officer.
6. Before giving the ruling, AAR must hear the applicant or his authorized
representative as well as the jurisdictional officers of CGST/ SGST.

© The Institute of Chartered Accountants of India


23.12 GOODS AND SERVICES TAX

7. If there is a difference of opinion between the two members of AAR,


they shall refer the point or points on which they differ to the Appellate
Authority for hearing the issue
8. The Authority shall pronounce its advance ruling in writing within 90
days from the date of receipt of application.
9. A copy of the advance ruling duly signed by members and certified in
prescribed manner shall be sent to the applicant, the concerned officer
and the jurisdictional officer.
8. Yes, the concerned officer, jurisdictional officer or applicant aggrieved by any
advance ruling may appeal to the Appellate Authority for Advance Ruling
(AAAR) within 30 days [extendible by another 30 days] from the date on which
such ruling is communicated to him in the prescribed form and manner.
The AAAR must pass an order confirming or modifying the ruling appealed
against within a period of 90 days of the filing of an appeal, after hearing the
parties to the appeal.
If members of AAAR differ on any point referred to in appeal, it shall be
deemed that no advance ruling can be issued in respect of the question under
appeal. A copy of the advance ruling pronounced by the AAAR is sent to
applicant, concerned officer, jurisdictional officer and to the Authority.

9. As per section 97(2), advance ruling can be sought for the following
questions:-
(a) classification of any goods or services or both
(b) applicability of a notification issued under the CGST Act
(c) determination of time and value of supply of goods or services or both
(d) admissibility of input tax credit of tax paid or deemed to have been paid
(e) determination of the liability to pay tax on any goods or services or both
(f) whether applicant is required to be registered
(g) whether any particular activity with respect to any goods and/or
services, amounts to/results in a supply of goods and/or services, within
the meaning of that term.
Examples/Illustrations/Questions and Answers, as the case may be, given in the
Chapter are based on the position of GST law existing as on 30.04.2021.

© The Institute of Chartered Accountants of India


ADVANCE RULING 23.13

AMENDMENTS MADE VIDE THE FINANCE (NO. 2)


ACT, 2019
The Finance (No. 2) Act, 2019 had come into force from 01.08.2019. However, the
amendments made in the advance ruling provisions of the CGST Act vide the
Finance (No. 2) Act, 2019 would become effective only from a date to be notified
by the Central Government in the Official Gazette. Such a notification has not been
issued till 30.04.2021. Therefore, the applicability or otherwise of such amendment
for May 2022 and/or November 2022 examinations shall be announced by the ICAI
only after such notification is issued by the Central Government.
In the table given below, the relevant existing provisions 1 of the advance ruling are
compared with the provisions as amended by the Finance (No. 2) Act, 2019.
Once the announcement for applicability of such amendments for examination(s)
is made by the ICAI, students should read the amended provisions given hereunder
in place of the related provisions discussed in the Chapter.

Existing provisions Provisions as amended by Remarks


the Finance (No. 2) Act,
2019

Section 95(a) Section 95(a) New clause (f) is


“advance ruling” means a “advance ruling” means a being inserted in
decision provided by the decision provided by the section 95 of the
Authority or the Appellate Authority or the Appellate CGST Act to
Authority to an applicant on Authority or the National define the
matters or on questions Appellate Authority to an “National
specified in sub-section (2) applicant on matters or on Appellate
of section 97 or sub-section questions specified in sub- Authority for
(1) of section 100, in relation section (2) of section 97 or sub- Advance Ruling”.
to the supply of goods or section (1) of section 100 or of Definition of
services or both being section 101C, in relation to the advance ruling is
undertaken or proposed to supply of goods or services or being amended
be undertaken by the both being undertaken or to provide that
applicant; proposed to be undertaken by the decision
the applicant; given by the

1
Provisions existing as on 30.04.2021

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23.14 GOODS AND SERVICES TAX

New clause (f) in section 95 National


Appellate
National Appellate Authority” means the National Authority will
Appellate Authority for Advance Ruling referred to in also be an
section 101A. advance ruling.

New section 101A: Constitution of National Appellate New sections


Authority for Advance Ruling 101A, 101B and
101C are being
(1) The Government shall, on the recommendations of the inserted in the
Council, by notification, constitute, with effect from such CGST Act so as to
date as may be specified therein, an Authority known as provide for
the National Appellate Authority for Advance Ruling for constitution,
hearing appeals made under section 101B. qualification,
(2) The National Appellate Authority shall consist of - appointment,
(i) the President, who has been a Judge of the Supreme tenure,
Court or is or has been the Chief Justice of a High Court, conditions of
or is or has been a Judge of a High Court for a period not services of the
less than five years; National
Appellate
(ii) a Technical Member (Centre) who is or has been a
Authority for
member of Indian Revenue (Customs and Central Excise)
Advance Ruling;
Service, Group A, and has completed at least fifteen years
to provide for
of service in Group A;
procedures to be
(iii) a Technical Member (State) who is or has been an
followed for
officer of the State Government not below the rank of
hearing appeals
Additional Commissioner of Value Added Tax or the
against
Additional Commissioner of State tax with at least three
conflicting
years of experience in the administration of an existing
advance rulings
law or the State Goods and Services Tax Act or in the field
pronounced on
of finance and taxation.
the same
(3) The President of the National Appellate Authority shall question by the
be appointed by the Government after consultation with Appellate
the Chief Justice of India or his nominee : Authorities of
Provided that in the event of the occurrence of any two or more
vacancy in the office of the President by reason of his States or Union
death, resignation or otherwise, the senior most Member territories in case
of the National Appellate Authority shall act as the

© The Institute of Chartered Accountants of India


ADVANCE RULING 23.15

President until the date on which a new President, of distinct


appointed in accordance with the provisions of this Act to persons; and to
fill such vacancy, enters upon his office : provide that the
Provided further that where the President is unable to National
discharge his functions owing to absence, illness or any Appellate
other cause, the senior most Member of the National Authority shall
Appellate Authority shall discharge the functions of the pass order within
President until the date on which the President resumes a period of ninety
his duties. days from the
date of filing of
(4) The Technical Member (Centre) and Technical Member
the appeal
(State) of the National Appellate Authority shall be
respectively.
appointed by the Government on the recommendations of
a Selection Committee consisting of such persons and in
such manner as may be prescribed.
(5) No appointment of the Members of the National
Appellate Authority shall be invalid merely by the reason
of any vacancy or defect in the constitution of the
Selection Committee.
(6) Before appointing any person as the President or
Members of the National Appellate Authority, the
Government shall satisfy itself that such person does not
have any financial or other interests which are likely to
prejudicially affect his functions as such President or
Member.
(7) The salary, allowances and other terms and
conditions of service of the President and the Members of
the National Appellate Authority shall be such as may be
prescribed :
Provided that neither salary and allowances nor other
terms and conditions of service of the President or
Members of the National Appellate Authority shall be
varied to their disadvantage after their appointment.
(8) The President of the National Appellate Authority
shall hold office for a term of three years from the date on
which he enters upon his office, or until he attains the age
of seventy years, whichever is earlier and shall also be
eligible for reappointment.

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23.16 GOODS AND SERVICES TAX

(9) The Technical Member (Centre) or Technical Member


(State) of the National Appellate Authority shall hold
office for a term of five years from the date on which he
enters upon his office, or until he attains the age of sixty-
five years, whichever is earlier and shall also be eligible for
reappointment.
(10) The President or any Member may, by notice in
writing under his hand addressed to the Government,
resign from his office :
Provided that the President or Member shall continue to
hold office until the expiry of three months from the date
of receipt of such notice by the Government, or until a
person duly appointed as his successor enters upon his
office or until the expiry of his term of office, whichever is
the earliest.
(11) The Government may, after consultation with the
Chief Justice of India, remove from the office such
President or Member, who -
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the
opinion of such Government involves moral turpitude; or
(c) has become physically or mentally incapable of acting
as such President or Member; or
(d) has acquired such financial or other interest as is
likely to affect prejudicially his functions as such President
or Member; or
(e) has so abused his position as to render his
continuance in office prejudicial to the public interest :
Provided that the President or the Member shall not be
removed on any of the grounds specified in clauses (d) and
(e), unless he has been informed of the charges against
him and has been given an opportunity of being heard.
(12) Without prejudice to the provisions of sub-section
(11), the President and Technical Members of the National
Appellate Authority shall not be removed from their office
except by an order made by the Government on the

© The Institute of Chartered Accountants of India


ADVANCE RULING 23.17

ground of proven misbehaviour or incapacity after an


inquiry made by a Judge of the Supreme Court nominated
by the Chief Justice of India on a reference made to him
by the Government and such President or Member had
been given an opportunity of being heard.
(13) The Government, with the concurrence of the Chief
Justice of India, may suspend from office, the President or
Technical Members of the National Appellate Authority in
respect of whom a reference has been made to the Judge
of the Supreme Court under sub-section (12).
(14) Subject to the provisions of article 220 of the
Constitution, the President or Members of the National
Appellate Authority, on ceasing to hold their office, shall
not be eligible to appear, act or plead before the National
Appellate Authority where he was the President or, as the
case may be, a Member.

New section 101B: Appeal to National Appellate Authority

(1) Where, in respect of the questions referred to in sub-


section (2) of section 97, conflicting Advance Rulings are
given by the Appellate Authorities of two or more States
or Union territories or both under sub-section (1) or sub-
section (3) of section 101, any officer authorised by the
Commissioner or an applicant, being distinct person
referred to in section 25 aggrieved by such advance ruling,
may prefer an appeal to National Appellate Authority :
Provided that the officer shall be from the States in which
such advance rulings have been given.
(2) Every appeal under this section shall be filed within a
period of thirty days from the date on which the ruling
sought to be appealed against is communicated to the
applicants, concerned officers and jurisdictional officers :
Provided that the officer authorised by the Commissioner
may file appeal within a period of ninety days from the
date on which the ruling sought to be appealed against is

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23.18 GOODS AND SERVICES TAX

communicated to the concerned officer or the


jurisdictional officer :
Provided further that the National Appellate Authority
may, if it is satisfied that the appellant was prevented by a
sufficient cause from presenting the appeal within the said
period of thirty days, or as the case may be, ninety days,
allow such appeal to be presented within a further period
not exceeding thirty days.
Explanation. - For removal of doubts, it is clarified that the
period of thirty days or as the case may be, ninety days
shall be counted from the date of communication of the
last of the conflicting rulings sought to be appealed
against.
(3) Every appeal under this section shall be in such form,
accompanied by such fee and verified in such manner as
may be prescribed.

New section 101C: Order of National Appellate Authority

(1) The National Appellate Authority may, after giving


an opportunity of being heard to the applicant, the officer
authorised by the Commissioner, all Principal Chief
Commissioners, Chief Commissioners of Central tax and
Chief Commissioner and Commissioner of State tax of all
States and Chief Commissioner and Commissioner of
Union territory tax of all Union territories, pass such order
as it thinks fit, confirming or modifying the rulings
appealed against.
(2) If the members of the National Appellate Authority
differ in opinion on any point, it shall be decided
according to the opinion of the majority.
(3) The order referred to in sub-section (1) shall be
passed as far as possible within a period of ninety days
from the date of filing of the appeal under section 101B.
(4) A copy of the Advance Ruling pronounced by the
National Appellate Authority shall be duly signed by the
Members and certified in such manner as may be

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ADVANCE RULING 23.19

prescribed and shall be sent to the applicant, the officer


authorised by the Commissioner, the Board, the Chief
Commissioner and Commissioner of State tax of all States
and Chief Commissioner and Commissioner of Union
territory tax of all Union territories and to the Authority or
Appellate Authority, as the case may be, after such
pronouncement.

Section 102 Section 102 Section 102 of the


The Authority or the The Authority or the Appellate CGST Act is being
Appellate Authority may Authority or the National amended so as to
amend any order passed by Appellate Authority may allow the National
it under section 98 or amend any order passed by it Appellate
section 101, so as to rectify under section 98 or section 101 Authority to
any error apparent on the or section 101C, respectively, amend any order
face of the record, if such so as to rectify any error passed by it so as
error is noticed by the apparent on the face of the to rectify any
Authority or the Appellate record, if such error is noticed error apparent on
Authority on its own accord, by the Authority or the the face of the
or is brought to its notice by Appellate Authority or the record, within a
the concerned officer, the National Appellate Authority period of six
jurisdictional officer, the on its own accord, or is brought months from the
applicant or the appellant to its notice by the concerned date of the order,
within a period of six officer, the jurisdictional officer, except under
months from the date of the the applicant, appellant, the certain specified
order: Authority or the Appellate circumstances.
Authority within a period of six
months from the date of the
order:

New sub-section (1A) of section 103

(1A) The Advance Ruling pronounced by the National Section 103 of the
Appellate Authority under this Chapter shall be binding on CGST Act is being
- amended so as to
(a) the applicants, being distinct persons, who had provide that the
sought the ruling under sub-section (1) of section 101B advance ruling
and all registered persons having the same Permanent pronounced by

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23.20 GOODS AND SERVICES TAX

Account Number issued under the Income-tax Act, 1961 the National
(43 of 1961); Appellate
(b) the concerned officers and the jurisdictional officers Authority shall be
in respect of the applicants referred to in clause (a) and binding, unless
the registered persons having the same Permanent there is a change
Account Number issued under the Income-tax Act, 1961. in law or facts, on
the applicants,
Section 103(2) Section 103(2) being distinct
The advance ruling referred The advance ruling referred to person and all
to in sub-section (1) shall be in sub-section (1) and sub- registered
binding unless the law, facts section (1A) shall be binding persons having
or circumstances supporting unless the law, facts or the same
the original advance ruling circumstances supporting the Permanent
have changed. original advance ruling have Account Number
changed. and on the
concerned
officers or the
jurisdictional
officers in respect
of the said
applicants and
the registered
persons having
the same
Permanent
Account Number.

Section 104(1) Section 104(1) Section 104 of the


Where the Authority or the Where the Authority or the CGST Act is being
Appellate Authority finds Appellate Authority or the amended so as to
that advance ruling National Appellate Authority provide that
pronounced by it under finds that advance ruling advance ruling
sub-section (4) of section 98 pronounced by it under sub- pronounced by
or under sub-section (1) of section (4) of section 98 or the National
section 101 has been under sub-section (1) of section Appellate
obtained by the applicant or 101 or under section 101C has Authority shall be
the appellant by fraud or been obtained by the applicant void where the
suppression of material or the appellant by fraud or ruling has been

© The Institute of Chartered Accountants of India


ADVANCE RULING 23.21

facts or misrepresentation suppression of material facts or obtained by fraud


of facts, it may, by order, misrepresentation of facts, it or suppression of
declare such ruling to be may, by order, declare such material facts or
void ab-initio and ruling to be void ab-initio and misrepresentation
thereupon all the provisions thereupon all the provisions of of facts.
of this Act or the rules made this Act or the rules made
thereunder shall apply to thereunder shall apply to the
the applicant or the applicant or the appellant as if
appellant as if such advance such advance ruling had never
ruling had never been made: been made:

Section 105: Powers of Section 105: Powers of Section 105 of the


Authority and Appellate Authority, Appellate CGST Act is being
Authority Authority and National amended so as to
(1) The Authority or the Appellate Authority provide that the
Appellate Authority shall, for (1) The Authority or the National
the purpose of exercising its Appellate Authority or the Appellate
powers regarding— National Appellate Authority Authority shall
have all the
(a) discovery and inspection; shall, for the purpose of
exercising its powers powers of a civil
(b) enforcing the attendance
regarding— court under the
of any person and
Code of Civil
examining him on oath; (a) discovery and inspection;
Procedure, 1908
(c) issuing commissions and (b) enforcing the attendance of for the purpose of
compelling production of any person and examining him exercising its
books of account and other on oath; powers under the
records, (c) issuing commissions and Act.
have all the powers of a civil compelling production of
court under the Code of Civil books of account and other
Procedure, 1908. records,
(2) The Authority or the have all the powers of a civil
Appellate Authority shall be court under the Code of Civil
deemed to be a civil court Procedure, 1908.
for the purposes of section (2) The Authority or the
195, but not for the Appellate Authority or the
purposes of Chapter XXVI of National Appellate Authority
the Code of Criminal shall be deemed to be a civil
Procedure, 1973, and every court for the purposes of

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23.22 GOODS AND SERVICES TAX

proceeding before the section 195, but not for the


Authority or the Appellate purposes of Chapter XXVI of
Authority shall be deemed the Code of Criminal
to be a judicial proceedings Procedure, 1973, and every
within the meaning of proceeding before the
sections 193 and 228, and Authority or the Appellate
for the purpose of section Authority shall be deemed to
196 of the Indian Penal be a judicial proceedings within
Code. the meaning of sections 193
and 228, and for the purpose of
section 196 of the Indian Penal
Code.

Section 106: Procedure of Section 106: Procedure of Section 106 of the


Authority and Appellate Authority, Appellate CGST Act is being
Authority. Authority and National amended so as to
The Authority or the Appellate Authority. provide that the
Appellate Authority shall, The Authority or the Appellate National
subject to the provisions of Authority or the National Appellate
this Chapter, have power to Appellate Authority shall, Authority shall
regulate its own procedure. subject to the provisions of this have power to
Chapter, have power to regulate its own
regulate its own procedure. procedure.

© The Institute of Chartered Accountants of India

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