CGST Act · Chapter XVII
Advance Ruling
s. 95Definitions
Section 95 defines the terms of the advance ruling scheme. An advance ruling is a binding answer, given in advance, to specified questions about a supply that the applicant is making or proposes to make.
- Under section 95(a) of the CGST Act, 2017 an "advance ruling" is a decision of the Authority or the Appellate Authority on the questions in section 97(2) or 100(1), in relation to a supply being undertaken or proposed to be undertaken by the applicant.
- An "applicant" is any person registered or desirous of obtaining registration (section 95(c)).
- The Authority and Appellate Authority are those constituted under the State or UT GST Act (sections 96 and 99).
s. 96Authority for advance ruling
There is no separate central advance ruling authority. Each State's Authority for Advance Ruling, constituted under its SGST Act, rules for CGST purposes too.
- Under section 96 of the CGST Act, 2017 the Authority for Advance Ruling constituted under a State or UT GST Act is deemed to be the Authority under the CGST Act in respect of that State or UT.
- Each Authority has one member from the Centre and one from the State.
s. 97Application for advance ruling
Section 97 lists the only questions an advance ruling can answer. Anything outside the list — for instance, place of supply — cannot be the subject of a ruling.
- Under section 97(1) of the CGST Act, 2017 an applicant applies in Form GST ARA-01 with the prescribed fee (Rule 104).
- Under section 97(2) a ruling may be sought only on: classification; applicability of a notification; time and value of supply; admissibility of input tax credit; liability to pay tax; whether registration is required; and whether a particular thing done amounts to a supply.
- Place of supply is not on the list, so Authorities have declined to rule on it.
s. 98Procedure on receipt of application
Section 98 is the procedure before the Authority. It first decides whether to admit the application, then rules within ninety days. It cannot rule on a question already pending or decided in the applicant's own case.
- Under section 98(2) of the CGST Act, 2017 the Authority admits or rejects the application after hearing the applicant and the concerned officer.
- It must not admit an application where the question is already pending or decided in any proceedings in the applicant's case under the Act (first proviso); an application may not be rejected without a hearing, and reasons must be given.
- The ruling must be pronounced within ninety days of the application (section 98(6)); if the two members differ, the point is referred to the Appellate Authority (section 98(5)).
s. 99Appellate Authority for Advance Ruling
Like the Authority, the Appellate Authority for Advance Ruling is constituted State by State under the SGST Acts.
- Under section 99 of the CGST Act, 2017 the Appellate Authority for Advance Ruling constituted under a State or UT GST Act is the Appellate Authority under the CGST Act for that State or UT.
- It consists of the Chief Commissioner of central tax and the Commissioner of State tax.
s. 100Appeal to Appellate Authority
Section 100 lets either side appeal an advance ruling to the Appellate Authority within thirty days.
- Under section 100(1) of the CGST Act, 2017 the applicant, the concerned officer or the jurisdictional officer aggrieved by an advance ruling may appeal to the Appellate Authority.
- The appeal must be filed within thirty days of communication, extendable by up to thirty days for sufficient cause (section 100(2)), in Form GST ARA-02 (applicant) or ARA-03 (officer) with the prescribed fee.
s. 101Orders of Appellate Authority
Section 101 governs the Appellate Authority's decision. If its two members cannot agree, the law provides no tie-breaker: the question simply cannot be ruled on.
- Under section 101(1) of the CGST Act, 2017 the Appellate Authority, after hearing the parties, confirms or modifies the ruling appealed against or referred.
- It must pass its order within ninety days of the appeal or reference (section 101(2)).
- If its members differ, it is deemed that no advance ruling can be issued on the question (section 101(3)).
s. 101AConstitution of National Appellate Authority
Section 101A provides for a national body to settle conflicting advance rulings between States. It was never set up. In 2026 Parliament allowed an existing body to act in its place, and the Government designated the Principal Bench of the GST Appellate Tribunal.
- Section 101A of the CGST Act, 2017, inserted by the Finance (No. 2) Act, 2019, provides for a National Appellate Authority for Advance Ruling, with a judicial President and technical members from the Centre and a State.
- The Authority was never constituted, and the CBIC text records the provision as effective from a date to be notified.
- Sub-section (1A), inserted by the Finance Act, 2026 from 01.04.2026, allows the Government, on the Council's recommendation, to notify an existing authority, including a Tribunal, to act as the National Appellate Authority until it is constituted. The GSTAT Principal Bench was so notified on 07.05.2026, effective 01.04.2026.
s. 101BAppeal to National Appellate Authority
Section 101B is the route for resolving conflicting advance rulings. It is open only where appellate rulings of different States conflict, and only to distinct persons of the same entity or to the department.
- Under section 101B(1) of the CGST Act, 2017, where Appellate Authorities of two or more States or UTs give conflicting rulings on the same question, an aggrieved applicant that is a distinct person of the same PAN, or an officer authorised by the Commissioner, may appeal to the National Appellate Authority.
- Applicants have thirty days and officers ninety days from communication of the last of the conflicting rulings; a further thirty days may be allowed for sufficient cause (section 101B(2)).
s. 101COrder of National Appellate Authority
Section 101C governs decisions of the National Appellate Authority: it hears all sides, decides by majority, and its ruling binds all registrations under the same PAN.
- Under section 101C of the CGST Act, 2017 the National Appellate Authority, after hearing the applicant, the authorised officer and the tax administrations of the States concerned, confirms or modifies the rulings appealed against.
- Differences are decided by majority (section 101C(2)); the order is to be passed, as far as possible, within ninety days (section 101C(3)).
- Its ruling binds all registered persons with the same PAN and their officers (section 103(1A)).
s. 102Rectification of advance ruling
Section 102 lets the Authority correct obvious mistakes in its own ruling within six months — but not to its disadvantage without hearing the applicant.
- Under section 102 of the CGST Act, 2017 the Authority or Appellate Authority may amend its order to rectify an error apparent on the face of the record, noticed on its own or brought to its notice by the applicant or the officers, within six months of the order.
- A rectification that increases tax or reduces admissible credit requires a prior hearing (proviso).
s. 103Applicability of advance ruling
Section 103 limits the reach of an advance ruling. It binds the applicant and the officers dealing with the applicant — no one else — and only so long as the law and facts are unchanged.
- Under section 103(1) of the CGST Act, 2017 an advance ruling of the Authority or Appellate Authority is binding only on the applicant, and on the concerned and jurisdictional officers in respect of the applicant.
- A ruling of the National Appellate Authority binds the applicants and all registered persons with the same PAN, and their officers (section 103(1A)).
- A ruling ceases to bind if the law, facts or circumstances on which it was based change (section 103(2)).
- Rulings have persuasive value for others but are not precedents; they can be challenged by writ petition (Columbia Sportswear, Supreme Court, 2012).
s. 104Advance ruling to be void in certain circumstances
Section 104 protects the scheme from abuse. A ruling obtained by hiding or misstating facts can be declared void from the start, and the department then has its full time to raise a demand.
- Under section 104(1) of the CGST Act, 2017, where the Authority or Appellate Authority finds that a ruling was obtained by fraud, suppression of material facts or misrepresentation, it may declare the ruling void ab initio after hearing the applicant.
- The Act then applies as if the ruling had never been made, and the period from the ruling to the order is excluded in computing the time limits under sections 73, 74 and 74A (Explanation).
s. 105Powers of Authority and Appellate Authority
Section 105 gives the advance ruling authorities the powers of a civil court to gather evidence.
- Under section 105(1) of the CGST Act, 2017 the Authority and Appellate Authority have the powers of a civil court under the Code of Civil Procedure for discovery and inspection, enforcing attendance and examining on oath, compelling production of documents, and issuing commissions.
- They are deemed civil courts for section 195 of the Code of Criminal Procedure, but not for Chapter XXVI of that Code; proceedings before them are judicial proceedings for the offences of false evidence (section 105(2)).
s. 106Procedure of Authority and Appellate Authority
Section 106 lets the advance ruling authorities set their own procedure within the framework of the Act and rules.
- Under section 106 of the CGST Act, 2017 the Authority and the Appellate Authority have power to regulate their own procedure, subject to the provisions of Chapter XVII.