Section 101C – Order of National Appellate Authority

Section 101C of the Central Goods and Services Tax Act, 2017 deals with the Order of the National Appellate Authority for Advance Ruling. It is an important provision in Chapter XVII of the CGST Act, which governs the advance ruling mechanism under GST.

Section 101C comes immediately after Sections 101A and 101B. Section 101A deals with the constitution of the National Appellate Authority framework, Section 101B deals with appeals to the National Appellate Authority, and Section 101C explains how the National Appellate Authority is to deal with those appeals and pronounce its order.

The provision is particularly relevant where conflicting advance rulings have been issued by Appellate Authorities for Advance Ruling of two or more States or Union territories on a question covered by Section 97(2). The GST Council had originally proposed the national-level mechanism to address such conflicting State-level advance rulings and promote consistency in the interpretation of GST provisions.

What Is Section 101C of the CGST Act?

Section 101C is titled “Order of National Appellate Authority.”

It provides the framework for passing an order after an appeal has been filed under Section 101B.

The provision broadly deals with four matters:

1. Opportunity of hearing to the specified parties and officers.
2. Power of the National Appellate Authority to confirm or modify the rulings appealed against.
3. Decision by majority where members differ in opinion.
4. Pronouncement and communication of the advance ruling after the order is passed.

The current statutory text also provides that the order should be passed as far as possible within 90 days from the date of filing of the appeal under Section 101B.

Purpose of Section 101C

The main purpose of Section 101C is to establish what happens after a qualifying appeal reaches the national-level advance ruling mechanism.

The GST advance ruling system normally operates through State or Union territory Authorities for Advance Ruling and Appellate Authorities for Advance Ruling.

However, different States can potentially arrive at different conclusions on the same GST question.

For example, a business may have GST registrations in Delhi and Maharashtra. If the respective Appellate Authorities issue conflicting rulings on the same question covered by Section 97(2), Section 101B provides the route for bringing the matter before the national-level authority.

Section 101C then governs the order-making stage.

The GST Council’s original proposal specifically stated that the centralized appellate authority was intended to deal with conflicting decisions of two or more State Appellate Advance Ruling Authorities on the same issue.

Section 101C(1) – Opportunity of Being Heard

Section 101C(1) provides that the National Appellate Authority may pass an order after giving an opportunity of being heard to the specified parties and authorities.

The statutory provision specifically refers to:

• the applicant;
• the officer authorised by the Commissioner;
• all Principal Chief Commissioners of Central tax;
• all Chief Commissioners of Central tax;
• the Chief Commissioner and Commissioner of State tax of all States; and
• the Chief Commissioner and Commissioner of Union territory tax of all Union territories.

This is considerably broader than the ordinary State-level advance ruling appeal process because a national-level ruling can have implications across multiple States and Union territories.

Why Is the Hearing Important?

The hearing requirement provides an opportunity for the relevant parties and tax authorities to place their submissions before the National Appellate Authority.

For a taxpayer, this can involve explaining:

• the original question on which the advance ruling was sought;
• the ruling issued by the Authority for Advance Ruling;
• the decision of the Appellate Authority;
• the conflicting ruling from another State or Union territory;
• the factual background;
• the relevant provisions of the CGST Act and Rules; and
• why the conflicting rulings require resolution at the national level.

The hearing is therefore an important part of the appellate decision-making process.

Power to Confirm or Modify the Rulings

After considering the matter, Section 101C(1) allows the National Appellate Authority to pass such order as it thinks fit, including:

• confirming the rulings appealed against, or
• modifying the rulings appealed against.

The provision therefore does not limit the national authority merely to accepting one State-level ruling and rejecting the other.

It can modify the rulings in accordance with the powers provided by the section.

Confirmation of Ruling

If the National Appellate Authority finds that the relevant ruling or rulings should remain unchanged, it may confirm them.

Modification of Ruling

Where the National Appellate Authority considers that the rulings require alteration, it may modify them.

The exact outcome depends on the questions involved, the facts presented and the statutory provisions applicable to the matter.

Example of Confirmation

Suppose the Appellate Authorities of State A and State B have issued rulings on the same Section 97(2) question.

Assume the two rulings are considered conflicting and the matter reaches the National Appellate Authority.

After hearing the relevant parties and authorities, the National Appellate Authority may conclude that one interpretation correctly reflects the law and confirm the relevant ruling.

The order would then be pronounced in accordance with Section 101C.

Example of Modification

Suppose two State Appellate Authorities have issued conflicting rulings concerning the GST treatment of a particular service.

The National Appellate Authority examines:

• the facts;
• the wording of the relevant GST provisions;
• the notifications;
• the submissions of the parties; and
• the positions taken in the conflicting rulings.

If it concludes that the existing rulings require modification, Section 101C permits it to modify the rulings appealed against.

The exact modification would depend on the matter before the authority.

Section 101C(2) – Decision by Majority

Section 101C(2) deals with a situation where the members of the National Appellate Authority do not agree.

It provides that if the members differ in opinion on any point, the point is to be decided according to the opinion of the majority.

This is important because the National Appellate Authority is constituted with multiple members.

A disagreement between members does not necessarily prevent a decision from being reached.

Example of Majority Decision

Suppose the National Appellate Authority has three members:

• Member A;
• Member B; and
• Member C.

If:

• Member A supports interpretation X;
• Member B supports interpretation X; and
• Member C supports interpretation Y,

the majority supports interpretation X.

Accordingly, the point would be decided according to the majority opinion.

The statute expressly provides for this majority mechanism.

Why Is the Majority Rule Important?

A multi-member appellate body can sometimes have differences of legal interpretation.

Without a mechanism for resolving such differences, the proceedings could remain undecided.

Section 101C(2) addresses this by providing a clear statutory rule: the majority opinion decides the point.

This is different from Section 101(3), which deals with a situation where members of the State Appellate Authority for Advance Ruling differ and provides that no advance ruling can be issued in respect of the question under appeal or reference.

Section 101C specifically provides a majority-decision mechanism for the National Appellate Authority.

Section 101C(3) – 90-Day Period

Section 101C(3) provides that the order under Section 101C(1) shall be passed as far as possible within 90 days from the date of filing of the appeal under Section 101B.

The wording “as far as possible” is important.

It indicates that the provision sets a statutory target for disposal rather than stating in absolute terms that every order automatically becomes invalid if it is not passed within 90 days.

Therefore, it would be inappropriate to treat the 90-day period as an automatic nullification provision.

Calculation of the 90-Day Period

The starting point is the date of filing of the appeal under Section 101B.

For example, if an appeal is filed on 1 July, the statutory 90-day period is calculated from that filing date.

The actual handling of the case may involve:

• examination of the appeal;
• identification of the conflicting rulings;
• notices and submissions;
• hearing of the applicant;
• hearing of the authorised officer;
• consideration of submissions from the relevant tax authorities; and
• preparation and pronouncement of the order.

The provision nevertheless requires that the order be passed as far as possible within 90 days.

Section 101C(4) – Signed and Certified Copy of the Ruling

Section 101C(4) deals with the communication of the advance ruling pronounced by the National Appellate Authority.

The copy must be:

• duly signed by the Members; and
• certified in the prescribed manner.

After pronouncement, the certified copy is to be sent to the persons and authorities specified in the provision.

The recipients include:

• the applicant;
• the officer authorised by the Commissioner;
• the Board;
• the Chief Commissioner and Commissioner of State tax of all States;
• the Chief Commissioner and Commissioner of Union territory tax of all Union territories; and
• the Authority or Appellate Authority, as the case may be.

This wide communication mechanism reflects the national character of the ruling.

Why Is the Ruling Sent to All States and Union Territories?

A State-level advance ruling generally concerns a particular applicant and the relevant tax authorities.

A ruling under the national-level mechanism is different because it arises from conflicting rulings involving different States or Union territories.

Consequently, Section 101C(4) provides for communication to the specified senior tax authorities across States and Union territories.

This helps ensure that the national-level ruling is available to the relevant tax administrations.

Section 101C and Section 101B

Section 101B and Section 101C are closely connected.

Section 101B

Section 101B deals with the appeal to the National Appellate Authority.

It applies where conflicting advance rulings have been given by Appellate Authorities of two or more States or Union territories on questions covered by Section 97(2).

Section 101C

Section 101C deals with the order after the appeal is filed.

The basic sequence is:

Conflicting advance rulings

↓

Appeal under Section 101B

↓

Hearing under Section 101C

↓

Order confirming or modifying the rulings

↓

Certified copy communicated under Section 101C(4)

This makes Section 101C the decision-making provision following a Section 101B appeal.

Section 101C and Section 101A

Section 101A establishes the National Appellate Authority framework.

Section 101C deals with the orders of that authority.

Therefore, the three provisions should be understood together:

Section	Main subject
Section 101A	Constitution of National Appellate Authority
Section 101B	Appeal to National Appellate Authority
Section 101C	Order of National Appellate Authority

The GST Council’s original legislative proposal specifically introduced Sections 101A to 101C as part of the centralized mechanism for conflicting advance rulings.

Section 101C and Section 101

Section 101 and Section 101C both deal with orders relating to advance rulings, but they operate at different levels.

Section 101

Section 101 deals with the Appellate Authority for Advance Ruling at the State or Union territory level.

The Appellate Authority may confirm or modify the ruling appealed against or referred to.

Section 101C

Section 101C deals with the National Appellate Authority.

It is relevant to the special mechanism for conflicting advance rulings from different States or Union territories.

Thus:

Section 101 = State/UT-level appellate order

Section 101C = National-level advance ruling order

Section 101C and Section 102 – Rectification

Section 102 is directly connected with Section 101C.

Section 102 permits the Authority, Appellate Authority or National Appellate Authority to amend an order to rectify an error apparent on the face of the record, subject to the conditions prescribed in that section.

The GST Council’s legislative proposal specifically added references to the National Appellate Authority and Section 101C to Section 102.

Therefore, an order under Section 101C should also be considered in conjunction with the statutory rectification mechanism.

Section 101C and Section 103

Section 103 deals with the applicability of advance rulings.

The national-level advance ruling mechanism was designed with a broader binding framework than an ordinary State-level advance ruling.

The GST Council’s original proposal provided for an advance ruling pronounced by the National Appellate Authority to bind the applicants who are distinct persons and registered persons having the same PAN, subject to the conditions specified in the law.

👉 Read More → Section 100 – Appeal to Appellate Authority

This is important for businesses operating through multiple GST registrations.

For example, a company may have GST registrations in several States but use the same PAN. The statutory framework for National Appellate Authority rulings was designed to address this multi-State situation.

The exact binding effect must, however, be examined with the current wording of Section 103 and the facts of the particular case.

Section 101C and Section 104

Section 104 deals with situations in which an advance ruling can become void.

The statutory framework includes National Appellate Authority rulings within the advance ruling provisions.

Therefore, a Section 101C order should not be viewed in isolation from the provisions dealing with the validity and continued applicability of advance rulings.

Where an advance ruling has been obtained through the circumstances specified under Section 104, the consequences under that section become relevant.

Section 101C and Section 105

Section 105 deals with the powers of the Authority and Appellate Authority, including powers relating to:

• discovery and inspection;
• enforcing attendance;
• examining persons on oath;
• issuing commissions; and
• compelling production of books of account and other records.

The statutory framework was expanded to include the National Appellate Authority within the advance ruling procedure.

These procedural powers are relevant because the national-level authority may need to examine evidence and documents while considering an appeal.

Section 101C 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 Chapter XVII.

This gives the advance ruling authorities procedural flexibility while keeping them subject to the statutory framework. The GST Council’s legislative materials specifically contemplated the inclusion of the National Appellate Authority in Section 106.

Current Institutional Position Under the GSTAT Framework

An important current development should be considered while reading Section 101C.

The GST Council recommended that the Principal Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) should also serve as the National Appellate Authority for Advance Ruling. The Council stated that this would provide a mechanism for resolving conflicting advance rulings across States and Union territories.

This development is important because Section 101C refers to the National Appellate Authority, while the current institutional framework provides for the Principal Bench of GSTAT to perform that national-level advance ruling function.

The Finance Act, 2026 also introduced an interim statutory mechanism under Section 101A(1A), allowing an existing authority, including a Tribunal, to be empowered to hear Section 101B appeals until the National Appellate Authority contemplated under the original framework is constituted.

Therefore, Section 101C should be read together with the current Section 101A(1A) framework and the notifications governing the authority empowered to hear Section 101B appeals.

How Section 101C Works – Step-by-Step

The operation of Section 101C can be understood through the following sequence.

Step 1 – Conflicting Advance Rulings

Appellate Authorities of two or more States or Union territories issue conflicting rulings on a question covered by Section 97(2).

Step 2 – Appeal Under Section 101B

An eligible applicant or authorised officer files an appeal under Section 101B.

Step 3 – National-Level Proceedings

The national-level authority considers the appeal and the relevant conflicting rulings.

Step 4 – Opportunity of Hearing

The persons and authorities identified in Section 101C(1) are given an opportunity of being heard.

Step 5 – Consideration of the Matter

The authority considers the conflicting rulings and submissions.

Step 6 – Order

The authority may confirm or modify the rulings appealed against.

Step 7 – Majority Decision

If members differ on a point, the majority opinion determines that point.

Step 8 – Pronouncement

The advance ruling is pronounced and a signed and certified copy is prepared.

Step 9 – Communication

The copy is sent to the applicant, authorised officer, Board and specified Central and State/UT tax authorities and the relevant Authority or Appellate Authority.

Practical Example of Section 101C

Suppose ABC Limited has GST registrations in several States.

The company seeks an advance ruling on whether a particular activity constitutes a supply under Section 97(2)(g).

The matter reaches Appellate Authorities in two States.

Suppose:

• State A’s Appellate Authority concludes that the activity is a supply; and
• State B’s Appellate Authority concludes that the same activity does not constitute a supply.

These rulings create the type of conflict for which Section 101B provides a national-level appeal mechanism.

After the appeal is filed, Section 101C governs the subsequent decision-making process.

The authority hears the relevant parties and authorities and may:

• confirm the relevant ruling or rulings; or
• modify them.

If the members disagree on a point, the majority opinion determines that point.

The resulting ruling is then signed, certified and communicated in accordance with Section 101C(4).

Another Example – Classification of Goods

Suppose the same type of product is supplied by a company in different States.

The company seeks an advance ruling on the classification of the product.

Two State Appellate Authorities reach different conclusions concerning the same Section 97(2)(a) question relating to classification.

If the statutory requirements for Section 101B are satisfied, the matter may reach the national-level mechanism.

Section 101C then provides the framework for hearing and deciding the appeal.

The importance of the national-level ruling in such a situation is that it addresses the conflict between the State-level advance rulings rather than leaving the taxpayer with two inconsistent interpretations.

Important Features of Section 101C

The major features of Section 101C are:

1. Opportunity of hearing

Specified applicants and tax authorities must be given an opportunity of being heard.

2. Confirmation or modification

The National Appellate Authority can confirm or modify the rulings appealed against.

3. Majority decision

If members differ on a point, the majority opinion determines the point.

4. 90-day target

The order is to be passed as far as possible within 90 days from filing the Section 101B appeal.

5. Signed and certified ruling

The ruling must be duly signed by the Members and certified in the prescribed manner.

6. Wide communication

The certified ruling is communicated to the applicant and the specified Central, State and Union territory tax authorities.

👉 Read More → Section 101B – Appeal to National Appellate Authority

Difference Between Section 101 and Section 101C

Basis	Section 101	Section 101C
Authority	Appellate Authority for Advance Ruling	National Appellate Authority
Level	State/UT	National
Main purpose	Order on AAR appeal/reference	Order on Section 101B appeal
Conflict between States	Not the central purpose	Specifically relevant
Decision where members differ	No advance ruling on the question under Section 101(3)	Majority opinion under Section 101C(2)
Time period	90 days	As far as possible within 90 days
Communication	Applicant and concerned/jurisdictional officers	Applicant, authorised officer, Board and specified Central/State/UT authorities

Difference Between Section 101C and Section 113

Section 101C should not be confused with Section 113.

Section 101C concerns the National Appellate Authority for Advance Ruling.

Section 113 concerns orders of the Goods and Services Tax Appellate Tribunal in ordinary GST appellate proceedings.

Although the current institutional framework connects the Principal Bench of GSTAT with the national advance ruling function, the statutory routes remain distinct and the nature of the proceeding must be identified carefully.

Key Takeaways of Section 101C

Section 101C can be summarised through the following points:

1. Section 101C deals with the Order of the National Appellate Authority for Advance Ruling.
2. It follows Section 101B, which provides the appeal mechanism.
3. The authority must provide the specified parties and officers an opportunity of being heard.
4. The applicant is specifically included among those who must be given an opportunity of hearing.
5. The officer authorised by the Commissioner is also included.
6. The provision identifies senior Central, State and Union territory tax authorities who are to be given an opportunity of being heard.
7. The National Appellate Authority may confirm the rulings appealed against.
8. It may also modify the rulings appealed against.
9. Where members differ on any point, the majority opinion decides that point.
10. The order should be passed as far as possible within 90 days from filing the Section 101B appeal.
11. The 90-day period is therefore expressed as a target qualified by the words “as far as possible.”
12. The advance ruling pronounced by the National Appellate Authority must be duly signed by its Members.
13. It must also be certified in the prescribed manner.
14. A copy must be communicated to the applicant and the specified tax authorities.
15. The Board is also specifically included among the recipients.
16. Section 101C should be read together with Sections 101A and 101B.
17. Section 102 provides the related rectification mechanism for an error apparent on the face of the record.
18. The GST Council originally introduced the national mechanism to address conflicting advance rulings issued by different State-level Appellate Authorities.
19. Under the current GSTAT framework, the Principal Bench of GSTAT has been identified to serve as the National Appellate Authority for Advance Ruling.

Conclusion

Section 101C of the CGST Act provides the decision-making framework for the National Appellate Authority for Advance Ruling after an appeal is filed under Section 101B.

The provision requires an opportunity of hearing to the applicant, the authorised officer and the specified senior Central, State and Union territory tax authorities. After considering the matter, the National Appellate Authority may confirm or modify the rulings appealed against. If its members disagree on any point, the law provides that the point is to be decided according to the majority opinion.

Section 101C also provides that the order should be passed, as far as possible, within 90 days from the filing of the Section 101B appeal. After pronouncement, the advance ruling must be duly signed and certified and communicated to the applicant, authorised officer, Board and the specified Central, State and Union territory tax authorities.

The provision is particularly important because the national advance ruling mechanism was created to address conflicts between advance rulings issued by Appellate Authorities in different States or Union territories. The GST Council has subsequently linked the Principal Bench of GSTAT with the National Appellate Authority for Advance Ruling as part of the operationalisation of the GST appellate framework.

In practical terms, Section 101C represents the order stage of the national advance ruling process: Section 101B brings the qualifying conflicting rulings before the national forum, while Section 101C governs the hearing, decision, majority mechanism, time target and communication of the resulting ruling.

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