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.
Key points
- 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).
The provisions
104(1)–(2)Advance ruling to be void in certain circumstances
Statutory text
(1) Where the Authority or the Appellate Authority 1[or the National Appellate Authority] finds that advance ruling pronounced by it under sub-section (4) of section 98 or under sub-section (1) of section 101 2[or under section 101C] has been obtained by the applicant or the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the applicant or the appellant as if such advance ruling had never been made:
Provided that no order shall be passed under this sub-section unless an opportunity of being heard has been given to the applicant or the appellant.
Explanation.-The period beginning with the date of such advance ruling and ending with the date of order under this sub-section shall be excluded while computing the period specified in sub-sections (2) and (10) of section 73 or sub-sections (2) and (10) of section 74 3[or sub-sections (2) and (7) of section 74A]
(2) A copy of the order made under sub-section (1) shall be sent to the applicant, the concerned officer and the jurisdictional officer.
*Enforced w.e.f 1st July, 2017.
1. Inserted by s.108 of the Finance (No. 2) Act, 2019 (23 of 2019). This amendment shall be effective from a date to be notified.
2. Inserted by s.108 of the Finance (No. 2) Act, 2019 (23 of 2019). This amendment shall be effective from a date to be notified.
3. Inserted by section 140 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Can an advance ruling be cancelled?
- Yes, if obtained by fraud, suppression or misrepresentation; it may then be declared void ab initio after a hearing (section 104 CGST).
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The reference to section 74A in the Explanation was inserted by the Finance (No. 2) Act, 2024, in force from 01.11.2024.