Section 105 – Powers of Authority, Appellate Authority and National Appellate Authority

Section 105 of the Central Goods and Services Tax Act, 2017 deals with the powers of the Authority for Advance Ruling, Appellate Authority for Advance Ruling and National Appellate Authority for Advance Ruling.

The provision gives these authorities certain powers similar to those of a civil court for specific procedural purposes. These powers are important because an advance ruling proceeding may require the authority to examine documents, obtain evidence, require the attendance of persons and compel production of books of account or other records.

Section 105 is therefore not a provision that decides the tax liability itself. Instead, it provides the procedural powers required by the advance ruling authorities to properly examine the matters before them.

The section was originally titled “Powers of Authority and Appellate Authority.” Following the legislative changes introducing the National Appellate Authority framework, the marginal heading was amended to “Powers of Authority, Appellate Authority and National Appellate Authority.” The corresponding amendments also extended the powers under both sub-sections to the National Appellate Authority.

What Is Section 105 of the CGST Act?

Section 105 provides that the Authority and Appellate Authority have certain powers of a civil court under the Code of Civil Procedure, 1908.

These powers relate to:

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

The same powers are now also available to the National Appellate Authority under the amended Section 105.

The provision contains two sub-sections:

• Section 105(1) deals with specific civil-court-like procedural powers.
• Section 105(2) deals with the status of the authorities and proceedings for specified purposes under other laws.

Purpose of Section 105

The advance ruling mechanism is intended to provide clarity on specified GST questions. For an authority to decide such questions properly, it may need access to documents, records and factual evidence.

For example, an applicant may seek an advance ruling concerning:

• classification of goods or services;
• applicability of a GST notification;
• time or value of supply;
• admissibility of input tax credit;
• liability to pay tax;
• requirement of registration; or
• whether a particular activity constitutes a supply.

These questions can sometimes depend on contracts, invoices, accounting records, agreements, technical documents or other evidence.

Section 105 provides the procedural authority needed to examine such material.

Section 105(1) – Powers Similar to a Civil Court

Section 105(1) provides that the Authority, Appellate Authority or National Appellate Authority shall, for exercising the specified powers, have all the powers of a civil court under the Code of Civil Procedure, 1908.

However, the statutory provision specifically identifies the purposes for which these powers are available.

They are:

1. Discovery and inspection
2. Enforcing attendance and examination on oath
3. Issuing commissions
4. Compelling production of books of account and other records

These powers help the authority conduct an effective inquiry into the matter before it.

Power of Discovery and Inspection

One of the powers available under Section 105(1) is the power relating to discovery and inspection.

Discovery and inspection are procedural mechanisms used to obtain and examine relevant information or documents.

In an advance ruling proceeding, the authority may need to understand the factual foundation of the transaction.

For example, an application may concern the GST classification of a product. The relevant determination could require examination of:

• product specifications;
• technical literature;
• purchase and sale documents;
• product descriptions;
• contractual documents; or
• other relevant records.

The authority’s power of discovery and inspection helps it examine relevant material instead of deciding the matter solely on unsupported statements.

Power to Enforce Attendance of a Person

Section 105(1) also provides the power to enforce the attendance of any person.

The person whose attendance is considered necessary may therefore be required to appear before the authority.

Depending on the matter, the person could potentially be someone who has relevant knowledge of the transaction or documents.

For example, a proceeding may involve questions concerning the actual nature of a business activity. A person who has relevant knowledge of the transaction may be required to appear and provide information.

The provision gives the authority a statutory mechanism for securing attendance where required for the proceeding.

Examination on Oath

Section 105(1) also refers to examining a person on oath.

This means that where a person is required to give evidence before the authority, the authority has the specified power to examine that person on oath.

The provision is therefore broader than simply asking a taxpayer to voluntarily submit written information.

It gives the authority a formal procedural power to examine relevant persons where necessary.

Power to Issue Commissions

Section 105(1) also provides the power of issuing commissions.

A commission is a procedural mechanism through which certain evidence-gathering or examination functions can be carried out in accordance with the applicable legal procedure.

This can be relevant where the authority considers that a particular procedural action is necessary for properly deciding the matter.

The power is derived from the civil-court powers specifically granted under Section 105.

Power to Compel Production of Books of Account

Another important power under Section 105(1) is the ability to compel production of books of account and other records.

Businesses maintain various records for GST and accounting purposes, such as:

• books of account;
• sales records;
• purchase records;
• invoices;
• credit notes;
• debit notes;
• contracts;
• agreements;
• stock records;
• electronic records; and
• other supporting documents.

Where such records are relevant to an advance ruling proceeding, Section 105 provides the authority with a statutory mechanism to require their production.

What Are “Other Records”?

Section 105 does not limit the production power only to traditional physical books of account.

Modern businesses frequently maintain records electronically.

Depending on the nature of the proceeding, relevant records may include:

• electronic accounting records;
• transaction statements;
• agreements;
• invoices;
• purchase orders;
• technical documents;
• correspondence;
• business records; and
• other material relevant to the question before the authority.

The exact records required will depend on the particular proceeding and the issue being examined.

Section 105 Applies to the National Appellate Authority

An important development in Section 105 is the extension of its powers to the National Appellate Authority for Advance Ruling.

The Finance (No. 2) Act, 2019 amended Section 105 by:

• changing the marginal heading to include the National Appellate Authority;
• inserting the National Appellate Authority into Section 105(1); and
• inserting the National Appellate Authority into Section 105(2).

The amendments were part of the legislative framework for the national advance ruling mechanism.

Therefore, Section 105 should now be understood as covering all three levels identified in its current heading:

Authority + Appellate Authority + National Appellate Authority

Section 105(2) – Deemed Civil Court for Specified Purposes

Section 105(2) provides that the Authority, Appellate Authority and National Appellate Authority shall be deemed to be a civil court for the purposes of Section 195 of the Code of Criminal Procedure, 1973.

At the same time, the provision specifically states that they are not deemed to be civil courts for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973.

This distinction is important.

Section 105 does not simply declare that the advance ruling authorities are civil courts for every purpose.

The civil-court status is specifically provided for the purposes mentioned in the section.

Proceedings Before the Authority Are Judicial Proceedings

Section 105(2) further provides that every proceeding before the Authority, Appellate Authority or National Appellate Authority shall be deemed to be a judicial proceeding for the purposes specified in the provision.

The current statutory text refers to Sections 193 and 228 and, for the purpose of Section 196, the Indian Penal Code.

This gives the proceedings a formal legal character and reinforces the importance of truthful and proper participation in the proceedings.

What Does “Judicial Proceeding” Mean in Section 105?

The expression is important because statements and conduct during the proceeding are not treated in the same way as an informal discussion with a tax officer.

The law specifically gives the proceeding the status of a judicial proceeding for the purposes identified in Section 105(2).

Accordingly, persons participating in an advance ruling proceeding should provide accurate information and documents and should not treat the process as an informal or casual consultation.

Section 105 Does Not Give Unlimited Powers

A common misunderstanding is that Section 105 gives the advance ruling authorities every power available to a civil court in every situation.

That is not what the provision says.

Section 105(1) grants civil-court powers for specified purposes, namely:

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

Therefore, the powers must be understood within the scope and purpose of Section 105.

Example – Production of Documents

Suppose ABC Private Limited applies for an advance ruling regarding the classification of a specialised product.

The authority needs to understand the technical characteristics of the product.

The applicant has already submitted some documents, but the authority considers additional technical records necessary.

Under Section 105, the authority has the statutory power to require production of relevant books, records or other documents within the scope of the proceeding.

The company should comply with a valid requirement and provide the relevant records.

Example – Examination of a Person

Suppose an advance ruling application involves a complicated contractual arrangement.

The documents submitted by the applicant do not fully explain how the transaction is actually carried out.

A person with relevant knowledge may be required to attend and provide evidence.

Section 105 allows the authority to exercise its specified power to enforce attendance and examine the person on oath.

Example – Accounting Records

Suppose an advance ruling question concerns the value or nature of a particular supply.

The authority requires supporting accounting records to understand the transaction.

The taxpayer may be required to produce relevant books of account or other records.

The authority can use the powers provided by Section 105 to obtain the necessary information for deciding the advance ruling matter.

Section 105 and Section 70 – Summons

Section 105 should not be confused with Section 70 of the CGST Act.

Section 70

Section 70 gives the proper officer power to summon a person to give evidence or produce a document or other thing in an inquiry.

Section 105

Section 105 specifically provides civil-court-like procedural powers to the:

• Authority;
• Appellate Authority; and
• National Appellate Authority

for advance ruling proceedings.

The two provisions therefore operate in different contexts.

Section 70 concerns an inquiry under the CGST Act by the proper officer, while Section 105 concerns the procedural powers of the advance ruling authorities.

Section 105 and Section 101

Section 101 deals with orders of the Appellate Authority for Advance Ruling.

Section 105, on the other hand, concerns the powers available while exercising the functions of the advance ruling authorities.

In simple terms:

Section 101 = Order of Appellate Authority

Section 105 = Powers available to the Authority, Appellate Authority and National Appellate Authority

The powers under Section 105 can assist the authorities in obtaining the material required to reach their decision.

Section 105 and Section 104

Section 104 allows an advance ruling to be declared void in specified circumstances where it was obtained through:

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

Section 105 provides procedural powers that can assist the relevant authority in examining evidence and records in proceedings before it.

Therefore, while the two sections deal with different subjects, documentary and evidentiary powers under Section 105 can be relevant in proceedings concerning an advance ruling.

Section 105 and Section 106

Section 105 should also be read with Section 106.

Section 105 deals with the powers of the advance ruling authorities.

Section 106 deals with their procedure.

Section 106 provides that, subject to the provisions of Chapter XVII, the Authority, Appellate Authority and National Appellate Authority have power to regulate their own procedure.

The amendments that extended Section 105 to the National Appellate Authority also amended Section 106 so that its procedural framework covers the National Appellate Authority.

👉 Read More → Section 106 – Procedure of Authority, Appellate Authority and National Appellate Authority

Thus:

Section	Main subject
Section 103	Applicability of advance ruling
Section 104	Advance ruling becoming void in specified circumstances
Section 105	Powers of advance ruling authorities
Section 106	Procedure of advance ruling authorities

Section 105 and the Code of Civil Procedure, 1908

The reference to the Code of Civil Procedure, 1908 is important.

Section 105 does not independently reproduce every procedural power of a civil court.

Instead, it states that the Authority, Appellate Authority and National Appellate Authority shall have the powers of a civil court under the CPC for the specific purposes identified in Section 105(1).

This statutory reference provides the legal foundation for exercising the specified procedural powers.

Why Are Civil Court Powers Necessary?

Advance ruling proceedings can sometimes involve technically complicated questions.

For example, determining the correct GST treatment may require the authority to understand:

• the actual contractual relationship;
• the nature of goods or services;
• the flow of consideration;
• accounting treatment;
• supporting records;
• technical characteristics;
• business arrangements; or
• other factual circumstances.

Without adequate procedural powers, the authority could face difficulty obtaining relevant evidence.

Section 105 therefore helps ensure that the authority can examine the factual foundation of the question before issuing its ruling.

Responsibilities of an Applicant

An applicant seeking an advance ruling should treat the proceeding seriously.

The applicant should:

1. Provide accurate facts.
2. Submit relevant documents.
3. Ensure that contracts and agreements are properly disclosed.
4. Respond to requests for information.
5. Produce relevant books and records when legally required.
6. Ensure that statements made during the proceeding are accurate.
7. Keep copies of documents submitted.
8. Maintain consistency between the application and actual business operations.

These practices are particularly important because Section 104 separately deals with situations where an advance ruling is obtained through fraud, suppression of material facts or misrepresentation of facts.

Importance of Maintaining Supporting Records

A taxpayer applying for an advance ruling should preserve the factual and documentary foundation of the application.

Useful records may include:

• application submitted to the AAR;
• contracts;
• invoices;
• purchase orders;
• product specifications;
• accounting records;
• technical documents;
• correspondence;
• submissions made during hearings; and
• copies of the final ruling.

Maintaining these records can help demonstrate the factual basis on which the advance ruling was obtained.

Section 105 and Electronic Records

Modern GST compliance is heavily dependent on electronic records.

Businesses commonly maintain accounting and transaction information digitally.

Where electronic records are relevant to an advance ruling proceeding, the taxpayer should be prepared to produce them in the form and manner required by the authority, subject to the applicable legal procedure.

The existence of electronic records does not remove the authority’s statutory power to require production of relevant records.

Difference Between Section 105 and a Regular Civil Court

Although Section 105 gives specified civil-court powers, the Authority, Appellate Authority and National Appellate Authority are not thereby transformed into ordinary civil courts for all purposes.

Their primary function remains the determination of advance ruling questions under the GST law.

The civil-court powers are procedural powers granted to enable them to perform that function effectively.

This distinction is important when interpreting Section 105.

Difference Between Section 105 and GST Investigation

Section 105 relates to proceedings before the advance ruling authorities.

GST investigation powers are found in other provisions of the CGST Act.

For example:

• Section 67 deals with inspection, search and seizure.
• Section 69 deals with arrest.
• Section 70 deals with summons.
• Section 71 deals with access to business premises.

Section 105 should therefore not be treated as a general GST investigation provision.

Its purpose is connected with the advance ruling mechanism.

Can the Authority Require Books of Account?

Yes.

Section 105(1) specifically provides the power to compel production of books of account and other records for the purposes specified in the provision.

If such records are relevant to an advance ruling proceeding, the authority can exercise its statutory power to require their production.

Can a Person Be Required to Appear?

Yes.

Section 105(1) specifically includes the power to enforce attendance of any person and examine that person on oath.

The person required to attend should therefore comply with a valid direction and provide truthful evidence relevant to the proceeding.

Can the Authority Inspect Documents?

Yes.

Discovery and inspection are specifically included among the powers granted under Section 105(1).

The authority may therefore use the statutory power to examine relevant material necessary for deciding the matter before it.

Does Section 105 Apply to AAR and AAAR?

Yes.

Section 105 applies to both:

• the Authority for Advance Ruling; and
• the Appellate Authority for Advance Ruling.

The National Appellate Authority was subsequently added to the provision through the amendments extending the advance ruling framework.

Does Section 105 Apply to the National Appellate Authority?

Yes.

The current marginal heading expressly includes the National Appellate Authority, and Section 105(1) and Section 105(2) were amended to include it.

This ensures that the national-level advance ruling authority has corresponding procedural powers when dealing with matters under the National Appellate Authority framework.

Practical Example – Complex Supply Arrangement

Suppose a company provides a combination of goods and services under a single commercial arrangement.

The applicant seeks an advance ruling concerning the GST treatment of the transaction.

The authority may need to examine:

• the master agreement;
• individual purchase orders;
• invoices;
• pricing structure;
• service descriptions;
• technical documents; and
• accounting records.

If necessary, Section 105 provides the procedural power to obtain and examine relevant documents and records.

Practical Example – Disputed Factual Description

Suppose an applicant describes its business activity in a particular manner in its advance ruling application.

During the proceeding, the authority finds that the available documents suggest that the actual transaction may operate differently.

The authority may require relevant records or examine persons with knowledge of the transaction.

The purpose is to establish the factual position before deciding the advance ruling question.

Important Points About Section 105

The major points of Section 105 can be summarised as follows:

1. Section 105 deals with the powers of advance ruling authorities.
2. It applies to the Authority for Advance Ruling.
3. It applies to the Appellate Authority for Advance Ruling.
4. It also applies to the National Appellate Authority.
5. These authorities have specified powers of a civil court under the Code of Civil Procedure, 1908.
6. The powers include discovery and inspection.
7. The powers include enforcing attendance of persons.
8. The powers include examination of persons on oath.
9. The powers include issuing commissions.
10. The powers include compelling production of books of account and other records.
11. Section 105 does not give unlimited civil-court powers for every purpose.
12. The civil-court powers are granted for the purposes specifically mentioned in Section 105(1).
13. Section 105(2) provides that the authorities are deemed to be civil courts for the specified purpose under Section 195 of the Code of Criminal Procedure, 1973.
14. Section 105(2) expressly excludes the application of the civil-court status for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973.
15. Proceedings before the authorities are deemed to be judicial proceedings for the purposes specified in Section 105(2).
16. Section 105 should be read together with Section 106, which deals with procedure.
17. Section 105 is different from Section 70, which concerns summons issued by a proper officer during an inquiry.
18. The purpose of Section 105 is to enable advance ruling authorities to obtain the evidence and records necessary to decide matters before them.

Conclusion

Section 105 of the CGST Act provides the procedural and evidentiary powers necessary for the Authority for Advance Ruling, Appellate Authority for Advance Ruling and National Appellate Authority to effectively perform their functions.

The section gives these authorities specified powers of a civil court under the Code of Civil Procedure, 1908. These include powers relating to discovery and inspection, enforcing attendance, examination on oath, issuing commissions and compelling production of books of account and other records.

The inclusion of the National Appellate Authority in Section 105 was made through amendments that expanded the advance ruling framework. The marginal heading and both sub-sections were amended so that the National Appellate Authority is covered alongside the Authority and Appellate Authority.

Section 105(2) also gives the authorities a specified deemed civil-court status and provides that proceedings before them are deemed to be judicial proceedings for the purposes identified in the provision. However, the section does not make these authorities ordinary civil courts for every purpose; the statutory powers operate within the scope specified by Section 105.

For taxpayers, the practical significance is that an advance ruling proceeding should be approached as a formal legal proceeding rather than an informal request for a GST opinion. Applicants should provide accurate facts, relevant documents and supporting records and should respond appropriately when the authority exercises its statutory powers.

👉 Read More → Section 104 – Advance ruling to be void in certain circumstances

Section 105 should therefore be read along with Sections 97 to 106, particularly Section 103 on applicability of advance rulings, Section 104 on rulings obtained through fraud or misrepresentation, and Section 106 on the procedure of the advance ruling authorities. Together, these provisions establish the procedural framework through which GST advance ruling matters are examined and decided.

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