Section 101A – Constitution of National Appellate Authority for Advance Ruling

Section 101A of the Central Goods and Services Tax Act, 2017 deals with the constitution of the National Appellate Authority for Advance Ruling (NAAAR). The provision forms part of Chapter XVII – Advance Ruling and is intended to provide a national-level mechanism for dealing with conflicting advance rulings issued by Appellate Authorities for Advance Ruling in different States or Union territories.

The basic purpose of this provision is to address a practical problem that can arise under the GST advance ruling system: the same question of law or fact may receive different interpretations from the Appellate Authorities of different States. Section 101B provides the mechanism for an appeal in such cases, while Section 101A establishes the authority that is intended to hear those appeals. The GST Council had specifically proposed the centralized authority because conflicting State-level advance rulings could create uncertainty for businesses operating across multiple States.

A significant development took place in 2026. Finance Act, 2026 inserted Section 101A(1A) to provide an interim mechanism until the National Appellate Authority is constituted. Subsequently, the Central Government empowered the Principal Bench of the Goods and Services Tax Appellate Tribunal (GSTAT), New Delhi to hear appeals under Section 101B, with the notification deemed effective from 1 April 2026.

What Is Section 101A of the CGST Act?

Section 101A establishes the statutory framework for the National Appellate Authority for Advance Ruling.

The original provision provides that the Government, on the recommendations of the GST Council, shall constitute by notification an authority known as the National Appellate Authority for Advance Ruling for Goods and Services Tax for hearing appeals made under Section 101B.

The provision also lays down the proposed composition, qualifications, appointment, tenure and removal framework for the President and Technical Members of the National Appellate Authority.

In simple terms:

Section 101A = Constitution of the National Appellate Authority

Section 101B = Appeal to the National Appellate Authority

Section 101C = Orders of the National Appellate Authority

Together, these provisions create the national-level framework for resolving conflicting advance rulings.

Why Was the National Appellate Authority Introduced?

The GST advance ruling mechanism operates largely through State-level Authorities for Advance Ruling and Appellate Authorities for Advance Ruling.

A taxpayer can approach the Authority for Advance Ruling on specified questions under Section 97(2). If the applicant or the concerned officers are aggrieved by the ruling, an appeal can be filed before the Appellate Authority under Section 100.

However, a business operating in several States may face a situation where the Appellate Authorities of two different States give different rulings on substantially the same question.

For example, suppose a company has registrations in Maharashtra and Karnataka and provides the same type of service in both States.

If:

• the Maharashtra AAAR takes one view regarding the GST treatment; and
• the Karnataka AAAR takes a different view on the same question,

the business can face significant uncertainty regarding the correct GST treatment.

The GST Council’s proposal for a centralized appellate authority was specifically linked to this problem of conflicting decisions from two or more State Appellate Authorities.

Section 101A was therefore designed as part of a centralized mechanism to address such conflicts.

Background of Section 101A

The idea of a centralized appellate mechanism for advance rulings was considered by the GST Council after concerns arose regarding inconsistent advance rulings between States.

The GST Council’s 31st meeting held on 22 December 2018 gave in-principle approval for creation of a Centralized Appellate Authority for Advance Ruling to deal with conflicting decisions of two or more State Appellate Authorities on the same issue. The proposal subsequently resulted in the insertion of Sections 101A, 101B and 101C into Chapter XVII of the CGST Act.

The provisions were inserted through the Finance (No. 2) Act, 2019 and were brought into the CGST framework with effect from 1 January 2020.

However, the National Appellate Authority contemplated under the original Section 101A was not constituted for several years. This created a gap between the statutory framework and the availability of a functioning national forum.

Section 101A(1) – Constitution of the National Appellate Authority

Section 101A(1) provides that the Government shall, on the recommendations of the GST Council, by notification constitute an authority known as the National Appellate Authority for Advance Ruling for Goods and Services Tax.

The authority is intended to hear appeals made under Section 101B.

This means that the National Appellate Authority is not simply another State-level advance ruling body.

It is intended to operate at the national level and deal with the specific category of disputes identified in Section 101B, namely conflicting advance rulings of Appellate Authorities in different States or Union territories.

Composition of the National Appellate Authority

The original Section 101A provides for a three-member structure consisting of:

1. A President
2. A Technical Member (Centre)
3. A Technical Member (State)

The proposed qualifications reflect the need for both judicial and technical tax experience.

President

The President must have been:

• a Judge of the Supreme Court; or
• the Chief Justice of a High Court; or
• a Judge of a High Court for a period of at least five years.

This gives the proposed authority a significant judicial component.

Technical Member (Centre)

The Technical Member (Centre) must be or must have been a member of the Indian Revenue Service, Group A, with the prescribed length of Group A service.

The original statutory framework specifies at least 15 years of service in Group A.

Technical Member (State)

The Technical Member (State) is required to be or have been an officer of the State Government not below the specified senior rank, with at least three years of experience in administration of an existing law or the State GST law, or in finance and taxation.

The combination of judicial and technical members was designed to bring different areas of expertise into the national advance ruling appellate mechanism.

Appointment of the President

Section 101A provides that the President of the National Appellate Authority is to be appointed by the Government after consultation with the Chief Justice of India or his nominee.

The provision also contains arrangements for a temporary vacancy in the office of President.

Where the office becomes vacant because of death, resignation or another reason, the senior-most Member can act as President until a new President assumes office.

Similarly, where the President is unable to perform functions because of absence, illness or another reason, the senior-most Member can discharge the functions of the President during that period.

Appointment of Technical Members

The Technical Member (Centre) and Technical Member (State) are to be appointed by the Government on the recommendations of a Selection Committee.

The composition and manner of functioning of the Selection Committee are to be prescribed.

Section 101A also provides that an appointment does not become invalid merely because there is a vacancy in, or defect in the constitution of, the Selection Committee.

Independence and Conflict of Interest

Section 101A contains safeguards relating to the financial and other interests of the President and Members.

Before appointing a person as President or Member, the Government is required to satisfy itself that the person does not have financial or other interests likely to prejudicially affect the performance of the functions of that office.

This requirement is relevant because the National Appellate Authority would be dealing with questions that can have significant tax consequences for businesses.

Term of Office

The original statutory framework provides different terms for the President and Technical Members.

President

The President holds office for:

• three years from the date of entering office; or
• until attaining the age of 70 years,

whichever is earlier.

The provision also allows reappointment subject to the statutory conditions.

Technical Members

A Technical Member holds office for:

• five years from the date of entering office; or
• until attaining the age of 65 years,

whichever is earlier.

The provision also contains eligibility for reappointment subject to the applicable statutory framework.

Resignation

The President or a Member may resign by giving written notice addressed to the Government.

The statutory framework does not make resignation immediately effective merely because the notice is submitted. The office-holder continues in office for the prescribed transition period or until a successor takes charge or the term expires, whichever occurs earlier.

This provision is intended to ensure continuity in the functioning of the authority.

Removal of the President or Members

Section 101A also specifies circumstances in which the Government may remove the President or a Member.

These include situations such as:

• insolvency;
• conviction for an offence involving moral turpitude;
• becoming incapable of performing functions;
• acquiring a financial or other interest likely to affect functions prejudicially; and
• abuse of position making continuation in office prejudicial to public interest.

For certain grounds, particularly those concerning financial interests or abuse of position, the person must be informed of the charges and given an opportunity of being heard before removal.

The 2026 Amendment – Section 101A(1A)

One of the most important current developments relating to Section 101A is the insertion of sub-section (1A) through the Finance Act, 2026.

The amendment was introduced because the National Appellate Authority had not yet been constituted under the original mechanism.

Section 101A(1A) provides an interim mechanism under which, until the National Appellate Authority is constituted, the Government may, on the recommendations of the GST Council and by notification, empower an existing Authority constituted under any law to hear appeals under Section 101B.

Importantly, the explanation specifically provides that the expression “existing Authority” includes a Tribunal.

This amendment became effective from 1 April 2026.

Why Was Section 101A(1A) Needed?

The original Section 101A contemplated a separate National Appellate Authority with its own President and Technical Members.

However, because that authority had not been constituted, the mechanism under Section 101B for dealing with conflicting advance rulings could not operate through the originally contemplated institution.

The 2026 amendment therefore created an interim statutory route.

Instead of waiting for a separate National Appellate Authority to be constituted, the Government can empower an existing authority or tribunal to perform the relevant function.

This is particularly important because GSTAT now provides an existing statutory tribunal structure capable of handling appellate matters.

Principal Bench of GSTAT as the Interim National Forum

Following the 2026 amendment, the Central Government issued Notification No. 02/2026-Central Tax dated 7 May 2026, empowering the Principal Bench of the Appellate Tribunal, New Delhi to hear appeals made under Section 101B.

The notification was deemed to have come into force from 1 April 2026. A subsequent corrigendum corrected the notification-number reference appearing in the original notification.

The GST Council had earlier highlighted that the Principal Bench of GSTAT would serve as the National Appellate Authority for Advance Ruling as part of the operationalisation of the GST appellate framework.

Therefore, Section 101A has become particularly relevant in the current GST framework because the Principal Bench of GSTAT has been empowered to hear Section 101B appeals while the separate NAAAR contemplated under Section 101A(1) remains to be constituted.

👉 Read More → Section 100 – Appeal to Appellate Authority

What Happens to Sub-sections (2) to (13) When an Existing Authority Is Empowered?

Section 101A(1A) contains an important consequence.

Where an existing authority is empowered to hear appeals under Section 101B:

• sub-sections (2) to (13) of Section 101A do not apply; and
• references to the National Appellate Authority in Chapter XVII are to be understood as references to the authority empowered under Section 101A(1A).

This makes practical sense because an existing tribunal already has its own statutory constitution, members, qualifications and procedural framework.

The interim authority therefore does not need to recreate the separate NAAAR composition requirements contained in Section 101A.

How Section 101A Connects With Section 101B

Section 101A should not be read in isolation.

The provisions work together as follows:

Provision	Main purpose
Section 95	Definitions relating to advance ruling
Section 96	Authority for Advance Ruling
Section 97	Application for advance ruling
Section 98	Procedure on receipt of application
Section 99	Appellate Authority for Advance Ruling
Section 100	Appeal to Appellate Authority
Section 101	Orders of Appellate Authority
Section 101A	Constitution of National Appellate Authority
Section 101B	Appeal to National Appellate Authority
Section 101C	Orders of National Appellate Authority
Section 102	Rectification of advance ruling
Section 103	Applicability of advance ruling
Section 104	Advance ruling to be void in certain circumstances

Section 101A therefore establishes the institution, while Section 101B identifies the circumstances in which an appeal can reach the national-level mechanism.

When Can an Appeal Reach the National Appellate Authority?

Section 101B is important for understanding Section 101A.

The national-level appeal mechanism is intended for situations where there are conflicting advance rulings on the same question from the Appellate Authorities of two or more States or Union territories.

Therefore, Section 101A does not create a general third level of appeal against every AAAR ruling.

The existence of a conflicting ruling is a central part of the Section 101B mechanism. The GST Council’s original proposal also specifically described the centralized authority as a mechanism for dealing with conflicting decisions of two or more State Appellate Authorities on the same issue.

Example of Section 101A in Practice

Suppose Company A has GST registrations in Delhi, Maharashtra and Karnataka.

The company seeks advance rulings concerning the GST treatment of a particular service.

The matter eventually reaches the respective Appellate Authorities.

Assume:

• Delhi AAAR takes one interpretation;
• Maharashtra AAAR takes another interpretation; and
• Karnataka AAAR follows one of the two interpretations.

If the statutory requirements of Section 101B are satisfied, the conflicting rulings can become relevant to the national appellate mechanism.

Under the current interim arrangement, the Principal Bench of GSTAT, New Delhi has been empowered to hear appeals under Section 101B.

Section 101A and Section 101C

Section 101C deals with the orders of the National Appellate Authority.

The framework originally contemplated that the National Appellate Authority could, after providing an opportunity of hearing to the relevant parties and officers, pass an order confirming or modifying the rulings appealed against.

Where members differ in opinion, the statutory framework provides for decision according to the majority.

Section 101C also contemplates a 90-day period for passing the order, described as “preferably” within that period.

The current interim mechanism under Section 101A(1A) is important because references to the National Appellate Authority can operate through the authority empowered under the new sub-section until the separate NAAAR is constituted.

Section 101A and Section 103

Section 103 deals with the binding effect of advance rulings.

The statutory framework introduced for the National Appellate Authority also expanded the binding-effect provisions so that a ruling of the National Appellate Authority can apply to the specified applicants and registered persons having the same Permanent Account Number, subject to the conditions contained in Section 103.

The original GST Council proposal specifically contemplated this broader binding effect for National Appellate Authority rulings.

This is different from an ordinary State-level advance ruling, whose binding effect is generally limited under Section 103 to the applicant and the concerned/jurisdictional officers in relation to that applicant.

Section 101A and Section 102 – Rectification

Section 102 allows rectification of an advance ruling where there is an error apparent on the face of the record.

The framework was amended to include orders of the National Appellate Authority within the rectification mechanism.

This means that Section 101A is connected not only with the constitution of the national authority but also with subsequent provisions governing its orders and rectification.

Section 101A and Section 104

Section 104 deals with an advance ruling becoming void in specified circumstances, including where the ruling has been obtained through:

• fraud;
• suppression of material facts; or
• misrepresentation of facts.

The statutory amendments relating to the National Appellate Authority extended this framework to rulings pronounced under the national appellate mechanism as well.

Section 101A and Section 106

Section 106 provides that the Authority, Appellate Authority and National Appellate Authority may regulate their own procedure subject to the provisions of the chapter.

The GST Council’s proposed amendments expressly included the National Appellate Authority in this provision.

Important Points for Taxpayers

Businesses should understand several important points about Section 101A.

It is not a general GST appeal provision

Section 101A does not provide a general appeal against every GST order.

It belongs specifically to the advance ruling framework.

Conflicting rulings are important

The national-level mechanism is designed principally around conflicting advance rulings from Appellate Authorities of different States or Union territories.

Section 101B must also be considered

Section 101A establishes the authority, but Section 101B determines the appeal mechanism.

Therefore, a taxpayer should examine both provisions before determining whether a national-level advance ruling appeal is available.

The 2026 interim mechanism is important

The Finance Act, 2026 inserted Section 101A(1A), allowing an existing authority or tribunal to be empowered while the NAAAR is not constituted.

GSTAT Principal Bench has been empowered

Notification No. 02/2026-Central Tax empowers the Principal Bench of GSTAT, New Delhi to hear appeals under Section 101B, with effect deemed from 1 April 2026.

Difference Between Section 101 and Section 101A

Basis	Section 101	Section 101A
Authority involved	Appellate Authority for Advance Ruling	National Appellate Authority framework
Level	State/UT level	National level
Main purpose	Orders on appeals against AAR rulings	Constitution of national appellate mechanism
Connected appeal provision	Section 100	Section 101B
Connected order provision	Section 101 itself	Section 101C
Typical issue	Appeal against an AAR ruling	Conflicting advance rulings across States/UTs
Current institutional development	State AAARs continue to issue orders	Principal Bench of GSTAT empowered for Section 101B appeals under Section 101A(1A)

Difference Between Section 101A and Section 107

Section 101A should also be distinguished from Section 107.

Section 101A belongs to the advance ruling chapter and concerns the national-level mechanism for conflicting advance rulings.

Section 107 deals with appeals against adjudication orders under GST before the Appellate Authority.

Therefore, a taxpayer cannot automatically use Section 101A merely because the taxpayer disagrees with an ordinary GST assessment or demand order.

The nature of the original order must first be identified.

Practical Importance of Section 101A for Businesses

Section 101A is particularly relevant for businesses operating across several States.

A business with multiple GST registrations may face different interpretations of the same GST issue.

For example, differences may arise regarding:

• classification of goods or services;
• applicability of a notification;
• taxability of a particular transaction;
• admissibility of input tax credit;
• determination of the applicable rate;
• whether an activity constitutes a supply; or
• other questions falling within the scope of Section 97(2).

When different State Appellate Authorities reach conflicting conclusions on the same qualifying question, the national appellate mechanism becomes relevant.

The 2026 interim arrangement is therefore an important development in the advance ruling structure because the Principal Bench of GSTAT has been empowered to hear Section 101B appeals.

Key Takeaways of Section 101A

Section 101A can be summarised through the following points:

1. Section 101A deals with the National Appellate Authority for Advance Ruling.
2. It forms part of Chapter XVII of the CGST Act.
3. The original provision contemplated a national authority consisting of a President and Technical Members.
4. The President was designed to have substantial judicial experience.
5. The Technical Members were designed to bring Central and State tax expertise.
6. The National Appellate Authority was intended to hear appeals under Section 101B.
7. Section 101B concerns conflicting advance rulings of Appellate Authorities of two or more States or Union territories.
8. Finance Act, 2026 inserted Section 101A(1A) to provide an interim mechanism until the National Appellate Authority is constituted.
9. The amendment permits the Government, on the recommendations of the GST Council, to empower an existing authority, including a Tribunal, to hear Section 101B appeals.
10. The Principal Bench of GSTAT, New Delhi was empowered for this purpose through Notification No. 02/2026-Central Tax.
11. The notification was deemed effective from 1 April 2026.
12. Section 101A should be read together with Sections 101B and 101C.
13. It should not be confused with the ordinary GST appellate mechanism under Section 107.
14. The broader purpose is to provide a mechanism for resolving conflicting interpretations arising from State-level advance rulings.

Conclusion

Section 101A of the CGST Act provides the statutory foundation for the National Appellate Authority for Advance Ruling, an important component of the GST advance ruling framework. Its underlying purpose is to provide a national-level mechanism where qualifying advance rulings issued by Appellate Authorities of different States or Union territories conflict on the same question.

The provision originally contemplated a separately constituted National Appellate Authority with a President and Technical Members. However, because that authority was not constituted for several years, Finance Act, 2026 introduced Section 101A(1A) as an interim mechanism. This provision allows the Government, on the recommendation of the GST Council, to empower an existing authority or tribunal to hear appeals under Section 101B.

Following this amendment, the Principal Bench of GSTAT, New Delhi was empowered by Notification No. 02/2026-Central Tax to hear Section 101B appeals, with the notification deemed effective from 1 April 2026.

👉 Read More → Section 102 – Rectification of advance ruling

For taxpayers, Section 101A is therefore important not because it creates a general appeal against every GST ruling or order, but because it forms part of a specific mechanism intended to address conflicting advance rulings across different States and Union territories.

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