Section 101 of the Central Goods and Services Tax (CGST) Act, 2017 deals with the orders of the Appellate Authority for Advance Ruling. It explains how the Appellate Authority is required to deal with an appeal or reference, the time within which the order is to be passed, what happens when the members of the Appellate Authority have different opinions, and to whom a copy of the appellate ruling must be sent.
Section 101 forms part of Chapter XVII – Advance Ruling and follows Section 100, which provides the mechanism for filing an appeal against an advance ruling. It should be read with Sections 98, 99, 100, 102 and 103 of the CGST Act.
The statutory framework therefore broadly operates as follows:
Application → Authority for Advance Ruling → Advance Ruling → Appeal/Reference → Appellate Authority → Appellate Order
The current statutory text of Section 101 contains four subsections.
What is Section 101 of the CGST Act?
Section 101 is titled “Orders of Appellate Authority.”
It deals with the decision-making stage after a matter reaches the Appellate Authority for Advance Ruling.
The four subsections of Section 101 cover:
- The power of the Appellate Authority to confirm or modify the ruling.
- The 90-day period for passing the order.
- The consequence when the members of the Appellate Authority differ.
- Communication of the signed and certified advance ruling to the relevant persons.
These provisions create the statutory framework for concluding an appeal or reference before the Appellate Authority.
Purpose of Section 101
The main purpose of Section 101 is to determine how the Appellate Authority should dispose of an appeal or reference concerning an advance ruling.
Section 100 gives an eligible person the right to appeal against an advance ruling. Section 101 then governs what happens after that appeal reaches the Appellate Authority.
The Appellate Authority may examine the ruling, hear the parties and pass an appropriate order confirming or modifying the original ruling.
The provision also deals with an unusual situation where the two members of the Appellate Authority cannot agree on a point involved in the appeal or reference.
Section 101(1) – Order by the Appellate Authority
Section 101(1) provides that the Appellate Authority may, after giving the parties to the appeal or reference an opportunity of being heard, pass such order as it thinks fit, confirming or modifying the ruling appealed against or referred to.
This subsection contains several important elements.
1. Opportunity of being heard
The parties to the appeal or reference must be given an opportunity of being heard.
This is an important procedural safeguard because the Appellate Authority should consider the submissions of the relevant parties before deciding the matter.
Depending on the case, the parties may include:
- The applicant
- The concerned officer
- The jurisdictional officer
- Other parties involved in the appeal or reference as prescribed under the statutory framework
The hearing allows the parties to explain their factual and legal position.
2. Appellate Authority can pass an appropriate order
The wording “such order as it thinks fit” gives the Appellate Authority the power to dispose of the matter within the statutory framework.
However, the provision specifically states that the ruling appealed against or referred to may be confirmed or modified.
Therefore, the appellate stage is not merely a formal confirmation process.
3. Original ruling can be confirmed
If the Appellate Authority agrees with the Authority for Advance Ruling, it may confirm the original ruling.
For example, if the Authority determined that a particular product falls under a particular GST classification and the Appellate Authority agrees after considering the appeal, it may confirm that ruling.
4. Original ruling can be modified
The Appellate Authority can also modify the ruling appealed against or referred to.
For example, if the Appellate Authority concludes that the original ruling requires a different treatment based on the applicable GST provisions, it may modify the ruling within the scope of the appeal or reference.
What Does “Confirming” the Ruling Mean?
Confirming the ruling means that the Appellate Authority agrees with the ruling issued by the Authority for Advance Ruling and does not modify the relevant determination.
For example:
AAR ruling: A particular activity constitutes a taxable supply.
Appeal: Applicant challenges the ruling.
AAAR decision: Original ruling is confirmed.
In this situation, the appellate authority has upheld the original ruling.
What Does “Modifying” the Ruling Mean?
Modifying the ruling means that the Appellate Authority changes the determination made by the Authority for Advance Ruling.
For example, suppose an applicant seeks a ruling on the classification of a product.
The Authority for Advance Ruling determines that the product falls under Classification A.
On appeal, the Appellate Authority examines the facts and applicable provisions and determines that the classification should instead be Classification B.
The appellate order would modify the original ruling.
Actual Appellate Authority orders published by the GST Council show that AAAR proceedings can result in the original ruling being upheld or issues being dealt with differently where the statutory framework permits.
Section 101(1) and Reference Under Section 98(5)
Section 101 does not apply only to appeals filed under Section 100.
It also refers to a reference under Section 98(5).
Section 98(5) provides a mechanism where the members of the Authority for Advance Ruling differ on a question on which an advance ruling is sought. The members state the points on which they differ and make a reference to the Appellate Authority for hearing and decision on that question.
Therefore, a matter can reach the Appellate Authority in two different ways:
Route 1 – Appeal
An eligible person is aggrieved by an advance ruling.
Section 98 ruling → Section 100 appeal → Section 101
Route 2 – Reference
Members of the Authority for Advance Ruling disagree on a question.
Section 98(5) reference → Appellate Authority → Section 101
This distinction is important when studying Section 101.
Section 101(2) – 90-Day Time Limit
Section 101(2) provides that the order referred to in subsection (1) shall be passed within 90 days from the date of:
- Filing of the appeal under Section 100; or
- A reference under Section 98(5).
Therefore, the statutory period is:
90 days from the appeal or reference
This is different from the 30-day period under Section 100, which concerns the time available for filing an appeal against the original advance ruling.
Section 100 vs Section 101 Time Limits
| Provision | Time limit |
|---|---|
| Section 100 | 30 days to file appeal |
| Additional period under Section 100 | Up to 30 further days for sufficient cause |
| Section 101 | 90 days for Appellate Authority to pass order |
The two time limits serve completely different purposes.
Section 100 controls the appellant’s filing period, while Section 101(2) concerns disposal of the appeal or reference by the Appellate Authority.
When Does the 90-Day Period Start?
Section 101(2) links the 90-day period to the date of filing of the appeal under Section 100 or the date of reference under Section 98(5).
Therefore, the starting point is not the date on which the original Authority issued its ruling.
It is linked to the appeal or reference reaching the Appellate Authority.
The GST Council’s published AAAR order material also reproduces Section 101(2) and discusses the 90-day period for passing the appellate order.
Is the 90-Day Period Important?
Yes.
Section 101(2) establishes a statutory timeframe for disposal of an appeal or reference.
This is intended to provide a defined period within which the appellate proceedings should reach an order.
However, the legal consequences of an order being passed after 90 days can involve questions of statutory interpretation. Published appellate decisions have considered whether the word “shall” in Section 101(2) makes the timeline mandatory or directory in particular circumstances.
Therefore, it is safer to state the statutory requirement accurately rather than automatically concluding that an order passed after 90 days is legally void.
Section 101(3) – Difference of Opinion Between Members
Section 101(3) deals with a situation where the members of the Appellate Authority differ on any point or points referred to in the appeal or reference.
In such a case, it is deemed that no advance ruling can be issued in respect of the question under the appeal or reference.
This is an important and distinctive feature of the GST advance ruling system.
The Appellate Authority generally functions through two members. If they reach different conclusions on a question before them and cannot agree, the Act provides a specific consequence rather than allowing one member’s view to automatically prevail.
Example of Difference of Opinion
Suppose an applicant appeals against an advance ruling concerning whether a particular transaction constitutes a supply.
The two members of the Appellate Authority examine the issue.
- Member A concludes that the transaction is a supply.
- Member B concludes that the transaction is not a supply.
If the members remain divided on the relevant question, Section 101(3) provides that no advance ruling can be issued in respect of that question under the appeal or reference.
Actual AAAR orders published through the GST Council include examples where a particular question was not ruled upon because the members differed in their views.
Does Section 101(3) Mean Every Question in the Appeal Gets No Ruling?
Not necessarily.
The statutory consequence applies to the question or points on which the members differ.
If an appeal contains multiple independent questions and the members agree on some questions but differ on another, the treatment of each question must be examined separately.
Published AAAR materials include examples where one question was dealt with while another question was treated as having no advance ruling because of a difference of opinion between the members.
Therefore, Section 101(3) should not automatically be interpreted as cancelling the entire appellate ruling whenever there is disagreement on only one particular question.
Difference Between Section 98(5) and Section 101(3)
These two provisions both deal with disagreement between members, but at different stages.
| Section 98(5) | Section 101(3) |
|---|---|
| Difference between members of the Authority for Advance Ruling | Difference between members of Appellate Authority |
| Occurs at original advance ruling stage | Occurs at appellate stage |
| Matter is referred to Appellate Authority | No advance ruling can be issued on the question under appeal/reference |
| Reference goes to AAAR | AAAR’s own members have differing views |
This distinction is important for understanding the advance ruling structure.
Section 101(4) – Communication of Appellate Ruling
Section 101(4) provides that a copy of the advance ruling pronounced by the Appellate Authority, duly signed by the Members and certified in the prescribed manner, must be sent after pronouncement to:
- The applicant
- The concerned officer
- The jurisdictional officer
- The Authority for Advance Ruling
This ensures that the appellate decision is formally communicated to all relevant parties and to the original Authority.
Certification of the Appellate Ruling
Rule 107 of the CGST Rules deals with certification and communication of copies of advance rulings pronounced by the Appellate Authority.
CBIC’s published advance ruling rules state that the duly signed copy is sent to:
- The applicant and the appellant
- The concerned officer of Central Tax and State/Union Territory Tax
- The jurisdictional officer of Central Tax and State/Union Territory Tax
- The Authority for Advance Ruling.
The statutory Section 101(4) and the procedural rule therefore work together.
Why Communication of the Order Matters
Communication of the appellate ruling is important because the parties need an official copy of the decision.
It allows:
- The applicant to know the outcome of the appeal
- The concerned officer to know the appellate decision
- The jurisdictional officer to implement the applicable ruling within the statutory framework
- The Authority for Advance Ruling to maintain the appellate record
Proper certification also establishes that the copy is an authenticated version of the ruling.
Section 101 and Section 100 – Difference
Sections 100 and 101 represent consecutive stages of the appellate process.
| Section 100 | Section 101 |
|---|---|
| Appeal to Appellate Authority | Orders of Appellate Authority |
| Provides right to appeal | Deals with decision on appeal/reference |
| Specifies eligible appellants | Specifies how order is passed |
| 30-day filing period | 90-day period for passing order |
| FORM GST ARA-02/ARA-03 | Appellate ruling/order |
| Fee prescribed under Rule 106 | Communication governed by Section 101(4) and Rule 107 |
Thus:
Section 100 = Filing the appeal
Section 101 = Deciding the appeal
Section 101 and Section 99 – Difference
Section 99 identifies the Appellate Authority for Advance Ruling.
Section 101 governs the orders passed by that authority.
| Section 99 | Section 101 |
|---|---|
| Appellate Authority for Advance Ruling | Orders of Appellate Authority |
| Identifies the authority | Governs the authority’s decision |
| Institutional provision | Decision-making provision |
Both provisions are therefore necessary for understanding the appellate advance ruling mechanism.
Section 101 and Section 103 – Difference
Section 101 deals with the order of the Appellate Authority.
Section 103 deals with the applicability and binding effect of an advance ruling.
Under Section 103, an advance ruling pronounced by the Authority or Appellate Authority is binding only on the applicant who sought it in respect of the matter referred for ruling and on the concerned or jurisdictional officer in respect of that applicant, subject to the statutory provisions.
Therefore, the fact that an Appellate Authority has issued a ruling does not mean that the ruling automatically becomes a universal GST interpretation binding on every taxpayer.
Section 101 and Section 102 – Difference
Section 102 deals with rectification of advance ruling, while Section 101 deals with the appellate order itself.
Section 102 permits the Authority or Appellate Authority to amend its order to rectify an error apparent on the face of the record, subject to the conditions prescribed by the provision.
This means that the appellate order stage and the subsequent rectification mechanism are separate statutory processes.
Section 101 and Section 104 – Difference
Section 104 deals with an advance ruling becoming void in certain circumstances, particularly where it has been obtained through fraud, suppression of material facts or misrepresentation of facts.
Section 101, on the other hand, deals with the ordinary appellate process.
Therefore:
Section 101 → Appeal/reference and appellate order
Section 104 → Void advance ruling in specified circumstances
These provisions should not be confused.
Practical Example – Appellate Authority Confirms Ruling
Suppose a taxpayer asks the Authority for Advance Ruling about the GST classification of a product.
The Authority decides in favour of a particular classification.
The taxpayer appeals against the ruling.
The Appellate Authority hears the applicant and the concerned officer and agrees with the original reasoning.
The Appellate Authority may pass an order confirming the ruling under Section 101(1).
The certified order is then communicated to the relevant parties under Section 101(4).
Practical Example – Appellate Authority Modifies Ruling
Suppose an applicant seeks an advance ruling concerning the applicability of a GST notification.
The Authority concludes that the notification does not apply.
The applicant appeals.
After hearing the parties and examining the relevant facts and law, the Appellate Authority reaches a different conclusion within the scope of the appeal.
It may modify the original ruling under Section 101(1).
The modified ruling is then communicated to the applicant, concerned officer, jurisdictional officer and Authority as required.
Practical Example – Difference Between Members
Suppose an appeal concerns two separate questions:
- Question 1: classification
- Question 2: eligibility of ITC
The members agree on the classification question but disagree on the ITC question.
The appellate decision can address the question on which there is agreement, while Section 101(3) applies to the question on which the members differ.
Published GST Council appellate orders demonstrate that such question-specific treatment can occur in practice.
Practical Example – Reference From AAR
Suppose the two members of the Authority for Advance Ruling disagree on a question.
Under Section 98(5), the members state their points of disagreement and refer the question to the Appellate Authority.
The Appellate Authority then hears the reference and deals with it under Section 101.
Therefore, Section 101 is relevant not only to ordinary appeals filed under Section 100 but also to references arising from a difference of opinion at the original Authority stage.
Role of Opportunity of Hearing
The opportunity of hearing under Section 101(1) is important because the appellate authority should consider the submissions of the parties before passing an order.
A party may use the hearing to explain:
- The factual background
- Grounds of appeal
- Relevant statutory provisions
- Notifications
- Classification arguments
- ITC position
- Taxability
- Other issues directly connected with the appeal or reference
The hearing should be considered along with the written submissions and documentary material forming part of the proceedings.
Section 101 and the Scope of the Appeal
An appeal under Section 100 is filed against an advance ruling.
The Appellate Authority then considers the appeal or reference within the statutory framework.
The grounds of appeal are therefore important because they identify the areas of disagreement with the original ruling.
A well-prepared appeal should clearly explain:
- Which finding is challenged
- Why the finding is challenged
- Relevant facts
- Applicable GST provisions
- Supporting notifications or rules
- The relief or modification sought
The prescribed appeal form and the statutory provisions should be followed.
Important Forms Related to Section 101
Section 101 itself primarily deals with the order rather than the initial appeal form.
The important forms around this process include:
| Form | Purpose |
|---|---|
| FORM GST ARA-01 | Application for advance ruling |
| FORM GST ARA-02 | Appeal by applicant |
| FORM GST ARA-03 | Appeal by concerned/jurisdictional officer |
| Appellate Authority ruling | Decision under Section 101 |
Rule 107 governs certification and communication of the advance ruling pronounced by the Appellate Authority.
Is Section 101 the Same as Section 107?
No.
This distinction is important because GST has another Section 107, which deals with appeals to the Appellate Authority under the general GST appeal framework.
Section 101 belongs to Chapter XVII – Advance Ruling and deals specifically with orders of the Appellate Authority for Advance Ruling.
Section 107 belongs to Chapter XVIII – Appeals and Revision and deals with the general appeal mechanism against specified adjudication orders.
Therefore:
Section 101 → Advance ruling appeals
Section 107 → General GST appeals
They should not be confused.
Section 101 – Key Features at a Glance
| Particular | Details |
|---|---|
| Section | 101 |
| Chapter | XVII – Advance Ruling |
| Subject | Orders of Appellate Authority |
| Subsections | 4 |
| Hearing | Parties must be given an opportunity of being heard |
| Power | Confirm or modify the ruling appealed against or referred to |
| Normal disposal period | 90 days |
| Starting point | Filing of appeal under Section 100 or reference under Section 98(5) |
| Difference between members | No advance ruling on the question under appeal/reference |
| Certified copy sent to | Applicant, concerned officer, jurisdictional officer and Authority |
| Related provisions | Sections 98, 99, 100, 102 and 103 |
| Certification rule | Rule 107 |
The statutory text of Section 101 and the corresponding Rule 107 establish this framework.
Important Points to Remember
1. Section 101 deals with the appellate decision
It does not deal primarily with filing the appeal. Filing is governed by Section 100.
2. Hearing must be provided
The Appellate Authority must give the parties an opportunity of being heard before passing its order under Section 101(1).
3. The ruling can be confirmed or modified
The Appellate Authority can confirm or modify the ruling appealed against or referred to.
4. The statutory period is 90 days
Section 101(2) states that the order is to be passed within 90 days from filing of the appeal or reference.
5. Difference of opinion has a specific consequence
If the members differ on a point or points referred to in the appeal or reference, no advance ruling can be issued in respect of that question under Section 101(3).
6. The ruling must be communicated
A signed and certified copy must be sent to the applicant, concerned officer, jurisdictional officer and Authority.
7. Section 101 should be read with Section 103
The binding effect of the resulting advance ruling is dealt with separately under Section 103.
Frequently Asked Questions About Section 101 of the CGST Act
Conclusion
Section 101 of the CGST Act, 2017 governs the orders of the Appellate Authority for Advance Ruling. After giving the parties an opportunity of being heard, the Appellate Authority may confirm or modify the advance ruling appealed against or referred to.
Under Section 101(2), the order is to be passed within 90 days from the date of filing of the appeal under Section 100 or the reference under Section 98(5). The provision also addresses a difference of opinion between the members of the Appellate Authority: where the members differ on a point or points referred to in the appeal or reference, no advance ruling can be issued in respect of that question.
Section 101(4) requires a duly signed and certified copy of the appellate ruling to be sent to the applicant, concerned officer, jurisdictional officer and the Authority for Advance Ruling. Rule 107 provides the corresponding certification and communication procedure.
For a complete understanding of the advance ruling mechanism, Section 101 should be read with Section 100 on appeals, Section 102 on rectification, Section 103 on applicability of advance ruling and Section 104 on advance rulings that may become void in specified circumstances.
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