Module 10

MODULE 10
GST PRACTICE

10.1.INTRODUCTION

Chapters XII to XIX of the Central Goods and Services Tax Act1 (hereinafter ‘Act’) provision for
the legal processes involved in the Goods and Services Tax (hereinafter ‘GST’)- practice, from
the very assessment of the tax payable, to the judicial proceedings that might subsequently emerge
owing to failure or non-payment of tax, or various contentions relating to the assessment of the tax
by the registered person and the tax officiant. These same provisions remain consistently
applicable in the context of any matter pertaining to the State Goods and Services Tax Act2, the
Union Territory Goods and Services Tax Act3, and the Integrated Goods and Services Tax Act.4

10.2.ASSESSMENT

Chapter XII of the Act deals with the assessment of a tax payable by a registered person.
“Assessment” means determination of tax liability under this Act and includes self-assessment, re-
assessment, provisional assessment, summary assessment and best judgment assessment.5

● Self-assessment: As per section 59 of the Act, the onus to assess or determine the tax
payable for any period specified under section 39 of the Act lies on the registered person,
who must then furnish a return for the same.

● Provisional assessment: However, under section 60 of the Act, when a taxable person is
unable to determine the value of goods or services or both, or determine the rate of tax
applicable to him, he may send a written request to pay the tax on a provisional basis along
with the reasons of his inability to assess the tax, to the proper officer. This officer will
then pass an order within a period of 90 days from the date of receiving the request,

1 Central Goods and Services Tax Act, 2017.
2 State Goods and Services Tax Act, 2017.
3 Union Territory Goods and Services Tax Act, 2017.
4 Integrated Goods and Services Tax Act, 2017.
5 Section 2(11), Central Goods and Services Tax Act, 2017.

allowing such person to provisionally pay the tax at a rate or value specified by him,
provided that the person executes a bond that would serve as a surety or a security if the
tax finally assessed is more than the tax provisionally paid.

Subsequently, the proper officer will, within a period of six months from the date of issue
of the aforementioned order, pass a final assessment order of the tax actually payable. This
period can be extended for a maximum of 6 months by the Joint Commissioner of
Additional Commissioner if they show sufficient cause for the same. Upon receiving the
order of final assessment, if the tax payable is in excess of the tax provisionally paid, the
taxable person must pay the remaining amount along with interest for the duration of the
period from when the tax became due to the date of actual payment. If the tax payable is
short of the tax provisionally paid, the same shall be refunded along with interest.

● Scrutiny of returns: Section 61 under this Chapter deals with the scrutiny of tax self-
assessed by a taxable person. As per this section, if a proper officer, in scrutinizing or
verifying the assessment filed by the taxable person finds any discrepancies therein, he will
notify such person and seek an explanation for the same. If he is satisfied with the
explanation furnished, he will notify the taxable person of the same. However, if no
satisfactory reason is furnished within 30 days of the notice and no corrective measure in
respect of the returns of that month, the officer can either take appropriate action against
the defaulter or can proceed to determine the tax or other dues that would become payable
by him.

● Assessment of non-filers of returns (Best-judgement assessment): According to section 62
of the Act, when a person fails to furnish returns even upon being served a notice, the
proper officer may proceed to assess the tax liability of such person to the best of his ability
by taking into account the information available or that has been gathered by him and issue
an assessment order within a period of five years from the date specified under section 44
for furnishing of the annual return for the financial year to which the tax not paid relates.

The section further provides that if such person to whom the aforementioned order is issued
furnishes the returns within 30 days, then the assessment order will be deemed to be
withdrawn. However, such person will be liable to pay interest and late fee as would be
applicable.

● Assessment of unregistered person: As per section 63 of the Act, when a person who is
liable to pay tax fails to obtain registration or whose registration has been cancelled, the
proper officer may assess his tax to the best of his ability for the periods taxable and may
issue an order to such person to furnish returns for the same within 5 years from the date
specified under section 44 for furnishing of the annual return for the financial year to which
the tax not paid relates. However, no such order can be issued without giving such person
an opportunity to be heard.

● Summary assessment in certain special cases: Section 64 of the Act provides that when
some evidence of tax liability of a person comes to the notice of the proper officer, if he
believes that any delay in such tax assessment may result in loss of revenue of interest, he
may, with the permission of the Joint Commissioner or Additional Commissioner, proceed
to assess the liability and issue and order to the person liable to pay the tax. However, when
the person who is liable cannot be ascertained in context of goods supply, then the person
in-charge of the goods will be treated as the taxable person in that context.

The section also provides that if such person makes an application within 30 days of receipt
of the order, or the Additional Commissioner or the Joint Commissioner finds the order to
be erroneous, he may withdraw such an order.

10.3.AUDIT

Following the assessment of tax by any person liable to pay tax, the tax authorities may undertake
an audit of such assessment to verify its correctness. This audit may be conducted for any period
of time and at any frequency that the authorities deem fit. The act defines “audit” as follows:

“Audit” means the examination of records, returns and other documents maintained or furnished
by the registered person under this Act or the rules made thereunder or under any other law for
the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed
and input tax credit availed, and to assess his compliance with the provisions of this Act or the
rules made thereunder.6

6 Section 2(13), Central Goods and Services Tax Act, 2017.

Under the provisions of Chapter XIII of the Act, the audit may either be an ordinary audit
conducted by tax authorities or it may be a special audit.

● Audit by tax authorities: According to section 65 under Chapter XIII of the Act, the
Commissioner or an officer authorized by him can undertake an audit of any registered
person for any period. Such person being audited must be notified of the audit 15 days prior
to the conduct of the audit and is required to furnish any books, information or assistance
required for the completion of the audit. However, the audit must be completed within 3
months of commencement of the audit, although such period may be extended by the
Commissioner for not more than 6 months.

Upon conclusion of the audit, the taxable person must be notified of the same within 30
days and must be informed of the findings, the reasons for the same, and his rights and
obligations.

● Special Audit: As per section 66 of the Act, if at any stage of scrutiny, inquiry, investigation
or other proceeding, an officer not below the rank of Assistant Commissioner is of the
opinion that the value hasn’t been declared correctly or that the credit availed is not within
normal limits, he may, with the prior approval of the Commissioner, direct the registered
person to get his books of account examined and audited by a cost accountant or a chartered
accountant nominated by the Commissioner. The accountant must then submit a report
within 90 days, subsequent to which the registered person is afforded an opportunity to be
heard in the context of the findings of the special audit.

If in either audit it is found that the tax is not paid or short-paid, or erroneously refunded,
or input tax credit is wrongly availed or utilized, then the proper officer may initiate action
under section 73 or 74 of the Act for the same.

10.4.ISSUE OF SHOW-CAUSE NOTICE

As previously mentioned, when a proper officer finds that the tax is not paid or short-paid, or
erroneously refunded, or input tax credit is wrongly availed or utilized by any person, then he may

initiate action against such defaulter. This is provided for under section 73 and 74 of Chapter XIV
of the Act.

● Section 73: Determination of tax not paid or short paid or erroneously refunded or input
tax credit wrongly availed or utilized for any reason other than fraud or any willful-
misstatement or suppression of facts.

Section 73 of the Act provides that when a proper officer is of the opinion that a person has not
paid or short-paid tax, or has received an erroneous refund, or has wrongly availed input tax credit
or has utilized it for any reason other than to commit fraud, or willful-misstatement or to suppress
facts, he may issue a notice on such person requiring the defaulter to show cause as to why he
shouldn’t pay the amount specified in the notice, along with the applicable interest under section
507 and the penalty mentioned in the notice. This notice is, in common parlance, referred to as
Show Cause Notice (hereinafter ‘SCN’). This notice must be served at least 3 months prior to the
time-limit to issue an order.

The section further provides that when the person charged with the aforementioned tax, along with
the applicable interest and penalty, before the issue of the SCN informs the proper officer of this
in writing, then the officer must not issue the SCN unless the amount paid still falls short of the
amount due, in which case he will proceed to issue the SCN for the amount still payable. Further,
when the tax, along with the interest payable is paid within 30 days of the issue of the SCN, no
penalty is applicable in the case and all proceedings in this regard are deemed to be concluded.

7 Section 50, Central Goods and Services Tax Act, 2017.
‘50. (1) Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made
thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the
period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding
eighteen per cent., as may be notified by the Government on the recommendations of the Council.
(2) The interest under sub-section (1) shall be calculated, in such manner as may be prescribed, from the day
succeeding the day on which such tax was due to be paid. (3) A taxable person who makes an undue or excess claim
of input tax credit under sub-section (10) of section 42 or undue or excess reduction in output tax liability under sub-
section (10) of section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as
the case may be, at such rate not exceeding twenty-four per cent., as may be notified by the Government on the
recommendations of the Council.’

● Section 74: Determination of tax not paid or short paid or erroneously refunded or input
tax credit wrongly availed or utilized by reason of fraud or any willful-misstatement or
suppression of facts.

While section 73 deals with charges where no fraud, or willful-misstatement or suppression of
facts is involved, section 74 of the Act deals with charges against a person who is suspected of not
paying or short-paying tax, or receiving an erroneous refund, or wrongly availing or utilizing input
tax credit by reason of fraud, willful-misstatement or suppression of facts. According to this
section, in such cases, the proper officer must issue an SCN at least 6 months prior to the time-
limit on the issue of an order. Further, to prevent the issue of an SCN, the person so charged must
pay not only the amount payable and interest, but also a penalty equivalent to 15% of the amount
payable. However, if the amount is paid within 30 days of the issue of the SCN, the penalty
applicable is 25%, in which case all proceedings in that respect would be deemed to be concluded.

10.5.ISSUE OF ORDER
● When tax is not paid or short-paid, or erroneously refunded, or input tax credit is wrongly
availed or utilized for any reason other than fraud, willful-misstatement, or suppression of
facts.

Section 73 of the Act provides that, upon the failure of person to pay the amount specified in the
SCN, the proper officer may, after considering any representations that may have been made by
the person so charged, issue an order specifying the amount of tax payable, the interest payable
thereon under section 50,8 and a penalty equivalent to 10% of the amount payable or Rs. 10,000,
whichever is higher. This order must be issued within 3 years from the date on which the tax not
paid or short-paid becomes due, or was erroneously refunded, or input tax credit was wrongly
availed or utilized.

8 Ibid.

● When tax is not paid or short-paid, or erroneously refunded, or input tax credit is wrongly
availed or utilized by reason of fraud, willful-misstatement, or suppression of facts.

As per Section 74 of the Act, when a person fails to pay the amount specified in the SCN along
with applicable interest under section 509 and the penalty specified, then the proper officer may
proceed to issue an order for the same within 5 years from the date on which the tax not paid or
short-paid becomes due, or was erroneously refunded, or input tax credit was wrongly availed or
utilized. However, if such person to whom the order is issued pays the amount along with interest
and a penalty of 50% of the amount payable within 30 days of the issue of the order, then all
proceedings in this regard would be deemed to be concluded.

10.6.APPEALS AND REVISION

Upon considering the representations made by a person charged under section 73 or 74 of the Act,
the proper officer may either issue a favourable order or an adverse order against such person.
When the order issued is an adverse one, such person may, if they choose to, appeal the decision
of the adjudicating authority before an Appellate Authority or a Revisional Authority. The decision
of this appellate or revisional authority may further be appealed before an Appellate Tribunal,
subsequent to which the decision so rendered may be appealed to the High Court and then the
Supreme Court, the provisions for which are made under Chapter XVIII of the Act.

10.6.1. Appellate Authority

An “Appellate Authority” is an authority appointed or authorized to hear appeals under section
107 of the Act.10

When any person is aggrieved by any decision or order passed under the Act, they may appeal
such decision or order before an Appellate Authority within 3 months of such decision or order
being issued. Further, the Commissioner may direct a subordinate officer to appeal the decision of
an Adjudicating Authority in order to satisfy himself in respect of the legality or proprietary of the

9 Ibid.
10 Section 2(8), Central Goods and Services Act, 2017.

decision so rendered or the order issued by the Adjudicating Authority. In such cases, the
authorized officer would be treated as the ‘Appellant’ and he must have filed the appeal within 6
months of the decision or order being issued. The Appellate Authority may extend this 3 or 6-
month time-period by a maximum of 1 month.

Section 107 further provides that no appeal can be filed unless the Appellant has paid:

(i) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the
impugned order, as is admitted by him; and

(ii) a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said
order, in relation to which the appeal has been filed.

The recovery of the remaining amount being disputed would be stayed for the time-being.

The Appellate Authority must give the Appellant an opportunity to be heard. After making
any enquiries that may be necessary, the Appellate Authority then passes an order as it
thinks just and proper, confirming, modifying or annulling the decision or order appealed
against. The order must be in writing and all matters must be heard and decided within 1
year of the date on which the appeal was filed as far as possible.

Upon the passing of an order, the same must be communicated to the Appellant, the
Respondent and the Adjudicating Authority. A copy must also be sent to the jurisdictional
Commissioner.

Every order passed under section 107 is subject to the provisions of sections 108, 113, 117
and 118 of the Act.

10.6.2. Revisional Authority

Section 108 of the Act provides that a Revisional Authority may, of its own accord, or upon
information received or a request from the Commissioner of State tax or of Union territory tax,
call for and examine the record of any proceedings. If it then considers that the decision or order
passed by any officer subordinate to the authority is erroneous in so far as it is prejudicial to the
interest of revenue and is illegal or improper or has not taken into account certain material facts,

then such authority may, if necessary, stay the operation of that decision or order for a period that
it deems fit. However, the Revisional Authority must give the person concerned an opportunity to
be heard and must make such further inquiry as may be necessary in that case.
In this context, it must be noted that the Act defines “Revisional Authority” as an authority
appointed or authorized for revision of decision or orders as referred to in section 108.11
Subsequent to the hearing and inquiry, the Revisional Authority may pass such order as it considers
just and proper, which may include an enhancement, or a modification or an annulment of the
decision or order being reviewed.
However, it must be noted that the power of the Revisional Authority is subject to certain
limitations or exceptions laid down under sub-section 2 of the said section 108. These limitations
are as follows:
(i) The order or decision sought to be revised is being subject to appeal under sections 107 or

112 or 117 or 118 of the Act; or
(ii) The period for appeal under section 107 has not expired or more than 3 years have expired

since the order or decision sought to be revised was passed; or
(iii) The order has already been taken for revision under section 108 at an earlier stage; or
(iv) The order was passed under sub-section 1 of section 108 itself.

Further, the section also provides that any order passed under Section 108 may be appealed
before a higher authority under sections 113 or 117 or 118 of the Act.

10.6.3. Appellate Tribunal
● Section 109 of the Act provides for the constitution of a Goods and Services Tax Appellate
Tribunal. The purpose of this Tribunal is to hear appeals against the decisions or orders
passed by an Appellate Authority or a Revisional Authority under sections 107 and 108 of
the Act.

11 Section 2(99), Central Goods and Services Tax Act, 2017.

This section further provides for the constitution of 4 types of benches under the Appellate
Tribunal: (i) National Bench and (ii) benches thereof, referred to as Regional Benches; and (iii)
State Benches and (iv) benches thereof, referred to as Area Benches. The National bench and the
Regional benches have the jurisdiction to hear appeals against the orders of the Appellate or
Revisional Authority where one of the issues involved relates to place of supply. On the other
hand, the State and Area benches exercise powers of the Appellate Tribunal within the respective
State or Union Territory.

● Section 111 of the Act prescribes the procedure that would apply before the Appellate
Tribunal. As per this section, in hearing any appeal, the Appellate Tribunal would be bound
not by the provisions of the Civil Procedure Code, 1908 but rather by the principles of
natural justice subject to the other provisions of the Act and rules made thereunder. It would
have the power to regulate its own procedures.

The section further provides that the Appellate Tribunal shall have the same powers as are vested
with a civil court under the Civil Procedure Code in respect of matters listed under sub-section 2
of section 111.12 Any order passed by the Tribunal may be enforced in the same manner as if it
were a decree made by a court in a pending suit and the Tribunal may send for execution of its
orders to the court within the local limits of whose jurisdiction,—

(a) in the case of an order against a company, the registered office of the company is
situated; or
(b) in the case of an order against any other person, the person concerned voluntarily resides
or carries on business or personally works for gain.

12Section 111, Central Goods and Services Tax Act, 2017.
‘(2) The Appellate Tribunal shall, for the purposes of discharging its functions under this Act, have the same powers
as are vested in a civil court under the Code of Civil Procedure, 1908 while trying a suit in respect of the following
matters, namely:—
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872, requisitioning any public record
or document or a copy of such record or document from any office;
(e) issuing commissions for the examination of witnesses or documents;
(f) dismissing a representation for default or deciding it ex parte;
(g) setting aside any order of dismissal of any representation for default or any order passed by it ex parte; and
(h) any other matter which may be prescribed.’

It must be noted that under sub-section 4 of section 111, all proceedings before the Appellate
Tribunal are deemed to be judicial proceedings within the meaning of sections 193 and 228, and
for the purposes of section 196 of the Indian Penal Code, and the Appellate Tribunal is deemed to
be civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal
Procedure, 1973.

● Section 112 of the Act deals with appeals to the Appellate Tribunal. This section provides
that any person aggrieved by an order passed against him under section 107 or section 108
of the Act may appeal against the such order within 3 months of the date on which the
order was communicated to him. Further, the Commissioner may direct a subordinate
officer to apply before the Tribunal in order to satisfy himself as to the legality or propriety
of the order passed by the Appellate or Revisional Authority, the time-limit for which is 6
months. However, the Tribunal may refuse to admit the appeal when the amount under
dispute is less than Rs. 50,000.

When the receipt of a notice is preferred under the abovementioned section, the party against whom
the order was passed must file a memorandum of cross-objections within 45 days of receipt of the
notice, not-withstanding whether such party has appealed the decision or not. Further, every appeal
filed must be accompanied with the payment of a prescribed fee. However, no appeal can be filed
unless the appellant has paid:

(i) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the
impugned order, as is admitted by him; and

(ii) a sum equal to twenty per cent. of the remaining amount of tax in dispute, in addition to
the amount paid under Section 107 of the Act, in relation to which the appeal has been
filed.

● Section 113 of the Act makes provisions in respect of the orders passed by the Tribunal.
As per this section, the Appellate Tribunal must, as far as possible, within one year, after
giving the parties to the appeal an opportunity of being heard, pass an order as it thinks fit,
confirming, modifying or annulling the decision or order appealed against. It may also refer
the matter back to the Appellate or Revisional Authority or to the original adjudicating
authority for a fresh adjudication or decision, directing such authority to take into account
any additional information, if necessary. Further, the Tribunal may amend its order within

3 months of passing such order, for the purpose of rectifying any error made in the said
order.

Upon the passing of an order, a copy of the same must be sent to the Appellant, the original
adjudicating authority, the Appellate or Revisional Authority, as may be the case, and the
jurisdictional Commissioner or the Commissioner of State tax or the Union territory tax, and the
same would be final and binding on all parties involved. However, every order passed under
section 113 is subject to the provisions of sections 117 and 118 of the Act.

10.6.4. High Court

Section 117 of the Act provides for an appeal before the High Court. As per this section, when any
person is aggrieved by an order passed by the State benches or Area benches of the Appellate
Tribunal, such person may appeal against the order before the High Court within a period of 180
days from the day on which the order being appealed against was received by the aggrieved party.

If the Court is convinced that the matter at hand involves a substantial question of law, then it may
admit such an appeal. On doing so, the Court must formulate a question on the substantial matter
and the appeal must be heard on this question only. The provisions of the Civil Procedure Code,
1908 would apply to the case of appeals heard by the Court.

The section further provides that no appeal can be heard by a bench of less than 2 judges and shall
be decided by the opinion of the majority of the judges. When no majority exists, the judges must
refer the points they disagree upon to one or more of the other judges of the High Court and the
matter would be decided upon the majority opinion of all these judges including the judges
originally presiding upon the matter.

The judgement delivered in any case must contain the grounds for the decision and any cost that
may be awarded by the Court, and effect must be given to the judgement by either side on the basis
of a certified copy of the judgement.

10.6.5. Supreme Court

Section 118 of the Act deals with the conditions of an appeal before the Supreme Court. An appeal
can be preferred before the Supreme Court by a person aggrieved by the order of the National or

Regional Bench, or against the order of the High Court under section 117 in which case such order
must be certified by the High Court to be fit for appeal before the Supreme Court. The provisions
of the Civil Procedure Code would apply in respect of an appeal against the order of the High
Court and if such decision is varied or reversed by the Supreme Court, then effect shall be given
to the order of the Supreme Court in the manner provided in section 117 in the case of a judgment
of the High Court.

10.6.6. Miscellaneous Provisions

Section 119: Section 119 provides that notwithstanding that an appeal is preferred to the High
Court or the Supreme Court, any sums payable to the government as a consequence of an order
passed by an Appellate Tribunal or the High Court, are payable in accordance with the order so
passed.

Section 121: Section 121 of the lays down certain non-appealable orders wherein an appeal cannot
be preferred against an order passed under the Act. These are as follows:

(i) The order is an order of the Commissioner or other competent authority directing
transfer of proceedings from one officer to another; or

(ii) The order pertains to seizure or retention of books of account, register, and other
documents; or

(iii) The order sanctions prosecution under the Act; or
(iv) The order was passed under section 8013 of the Act.

13 Section 80, Central Goods and Services Tax Act, 2017.
‘80. On an application filed by a taxable person, the Commissioner may, for reasons to be recorded in writing, extend
the time for payment or allow payment of any amount due under this Act, other than the amount due as per the liability
self-assessed in any return, by such person in monthly instalments not exceeding twenty four, subject to payment of
interest under section 50 and subject to such conditions and limitations as may be prescribed:
Provided that where there is default in payment of any one instalment on its due date, the whole outstanding balance
payable on such date shall become due and payable forthwith and shall, without any further notice being served on
the person, be liable for recovery.’

10.7.RECOVERY PROCEEDINGS

● Initiation of Recovery Proceedings: When any amount is payable by a taxable person in
pursuance of an order issued under the Act and is not paid within 3 months from the date
of such an order being served upon the person, then in such cases, the proper officer is
empowered to initiate recovery proceedings under section 78 of the Act.

● Methods of recovery: Upon initiating the recovery proceedings, the proper officer may
proceed to recover the amount in accordance with the methods provided under section 79
of the Act. These are as follows:

(i) The amount payable may be deducted from any amount owed to the defaulter by
the government, that is under the control of the proper officer or any specified
officer;

(ii) It may be recovered from the detainment and sale of goods belonging to the
defaulter, that are under the control of the proper officer or the specified officer;

(iii) It may be recovered by any other person who owes money to the defaulter. The
officer may issue a notice to such person, requiring him to pay the amount due to
the defaulter to the Government within a specified period, or on the date on which
the amount becomes due. However, if such person proves that the person accused
of being a defaulter does not owe any amount to the Government, or that the person
on whom the present notice has been served does not owe the defaulter any money
or doesn’t hold such amount, then he need not pay the amount specified in the
notice;

(iv) The proper officer may distrain any movable or immovable property belonging to
the defaulter until the amount due is paid. However, if the amount is not paid within
30 days of such distress, then the officer may cause the sale of such distrained
property, the proceeds of which must be used to satisfy the amount payable by the
defaulter;

(v) The proper officer may send a certificate specifying the amount payable, to the
Collector of the district in which the defaulter owns property, or resides, or carries

on business, and the Collector can then proceed to collect the amount as if it were
an arrear of land revenue;
(vi) The proper officer may file an application before the appropriate Magistrate who
may proceed to collect the amount from the defaulter as if it were a fine imposed
by the Magistrate.
Thus, these are the various methods by which the proper officer may recover the amount
due from the tax defaulter.
● Continuation and validation of certain recovery proceedings: Section 84 of the Act
provides for the continuation and validation of recovery proceedings in respect of any
notice of demand of tax, penalty, interest or other dues payable to the government under
this Act is served upon the taxable person or any other person and an appeal or revision
application or any other proceedings are initiated in this respect. As per this section, when
the amount payable is enhanced or reduced by the appellate, revisional, or other authority,
the Commissioner need not issue a fresh notice of demand and the recovery proceedings
shall continue thereafter from the stage at which they stood before such application for
appeal or revision was preferred.

10.8.ADVANCE RULING
An advance ruling is a decision provided by the Authority or Appellate Authority under the Act to
the applicant on matters or questions under sub-section (2) of section 97 of the Act, relating to the
supply of goods or services or both that is being undertaken or proposed to be undertaken by the
applicant.14 Sections 96 and 99 of the Act provide that the Authority and the Appellate Authority
for advance ruling constituted under the State Goods and Services Act or the Union Goods and
Services Act would also be the Authority and Appellate Authority to provide decisions under the
Act.

14 Section 95, Central Goods and Services Tax Act, 2017.

The list of questions under sub-section (2) of section 97 of the Act in respect to which an advance
ruling can be issued are as follows:

(i) classification of any goods or services or both;
(ii) applicability of a notification issued under the provisions of the Act;
(iii) determination of time and value of supply of goods or services or both;
(iv) admissibility of input tax credit of tax paid or deemed to have been paid;
(v) determination of the liability to pay tax on any goods or services or both;
(vi) whether applicant is required to be registered;
(vii) 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.15

When the Authority receives an application for advance ruling under section 98 of the Act, it may
choose to either admit or dismiss such an application depending on whether it pertains to the
provisions of section 97(2) of the Act or not. When an application is accepted by the Authority, it
must provide both the applicant and the concerned officer and their respective representatives an
opportunity to be heard and must then pronounce its advance ruling on the question preferred in
the application within 90 days of receipt of such application.16

When the members of the Authority differ on any question in respect of which an advance ruling
it sought, then the Authority may refer the matter to the Appellate Authority for Advance Ruling.17
Further, an applicant aggrieved by the pronouncement of the Authority under section 98 may prefer
an appeal against the same before the Appellate Authority within 30 days of receipt of such
pronouncement by the Authority.18

The Appellate Authority may, upon giving both parties an opportunity of being heard, pass an
order within 90 days of the filing of the appeal or the reference of a matter before it, either
confirming or modifying the ruling of the Authority that has been appealed against. Where the

15 Section 97(2), Central Goods and Services Tax Act, 2017.
16 Section 98, Central Goods and Services Tax Act, 2017.
17 Ibid.
18 Section 100, Central Goods and Services Tax Act, 2017.

Appellate Authority differs on the question preferred before it, then no advance ruling can be
issued in respect of such under appeal or reference.19
Any error in the ruling of the Authority or Appellate Authority may be rectified by such authority
within 6 months from the date on which such ruling was pronounced.20 Further, the advance ruling
pronounced by the Authority or the Appellate Authority are binding only on (i) the applicant, and
(ii) the concerned officer or jurisdictional officer in respect of the applicant.21
Where the advance ruling has been obtained by the applicant or the appellant by fraud,
misrepresentation or suppression of material facts, then such ruling may be declared void-ab-initio
by the Authority or the Appellate Authority.22
The Authority or the Appellate Authority is deemed to be a civil court for the purposes of section
195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973, and every
proceeding before the Authority or the Appellate Authority is deemed to be a judicial proceedings
within the meaning of sections 193 and 228, and for the purpose of section 196 of the Indian Penal
Code.23 Further, the Authority or the Appellate Authority is empowered to regulate its own
procedures.24
Thus, these are the significant provisions of the Act that regulate the various stages and
proceedings under the GST Practice.

19 Section 101, Central Goods and Services Tax Act, 2017.
20 Section 102, Central Goods and Services Tax Act, 2017.
21 Section 103, Central Goods and Services Tax Act, 2017.
22 Section 104, Central Goods and Services Tax Act, 2017.
23 Section 105, Central Goods and Services Tax Act, 2017.
24 Section 106, Central Goods and Services Tax Act, 2017.