Section 106 - Procedure of Authority, Appellate Authority and National Appellate Authority
Reviewed by CA Nikhil Gupta and Kajri Singh · Last reviewed 30 August 2026
Finin2min Summary - Section in 2 Minutes
Allows AAR/AAAR/National Authority to regulate procedure subject to the Chapter and prescribed rules. Procedural directions cannot override statute or natural justice.
Why Section 106 matters
Section 106 (Procedure of Authority, Appellate Authority and National Appellate Authority) is the section-level control point within Chapter XVII — Advance Ruling. Advance-ruling provisions allow specified questions to be decided prospectively for the applicant, but admissibility, binding effect and appellate route are tightly controlled.
Current-law and amendment control
validation 1 — controlling consolidated Act
India Code — Central Goods and Services Tax Act, 2017. Used for the current chapter/section inventory and consolidated provision status.
validation 2 — independent official cross-check
CBIC Tax Information Portal. Use the Act HTML/PDF and amendment history together with current notifications/circulars.
Transaction-date rule: Never treat today’s consolidated wording, a portal screen or an enacted-but-uncommenced amendment as proof of the law that applied on another date. Fix the relevant tax period first.
Official statutory text
The authoritative provision, footnotes and amendment notes are maintained in the official consolidated Act. This analytical page does not re-typeset amendment markers into the running statutory sentence.
- Open the India Code consolidated CGST Act PDF - as on 11 June 2026
- Open the India Code CGST Act register
- Open the CBIC Tax Information Act explorer
Official-source reference reviewed on 2026-07-28. Apply the version and commencement position relevant to the transaction period.
Clause-by-clause / paragraph-wise decode
Allows AAR/AAAR/National Authority to regulate procedure subject to the Chapter and prescribed rules. Procedural directions cannot override statute or natural justice.
Section–Rule–Form–Notification–Circular bridge
The mapping is a legal concordance, not a round-robin related-link list. It is limited to instruments listed in this repository.
Practical example
Authority issues a hearing and document-index direction for orderly disposal.
Professional alert
Comply with local procedure while preserving statutory objections.
CGST Rules - rule by rule The rule text layer is paired with a current amendment/control note. Forms and portal labels may change; use the latest official utility. Rule 103 RULE TEXT / CONSOLIDATED BASE LAYER 103. Qualification and appointment of members of the Authority for Advance Ruling.- The Government shall appoint officers not below the rank of Joint Commissioner as member of the Authority for Advance Ruling.245 CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 AAR members are officers not below Joint Commissioner appointed by Government. Rule 104 RULE TEXT / CONSOLIDATED BASE LAYER 104. Form and manner of application to the Authority for Advance Ruling.-(1)An application for obtaining an advance ruling under sub-section (1) of section 97 shall be made on the common portal in FORM GST ARA-01 and shall be accompanied by a fee of five thousand rupees, to be deposited in the manner specified in section 49. (2) The application referred to in sub-rule (1), the verification contained therein and all the relevant documents accompanying such application shall be signed in the manner specified in rule 26. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 ARA-01 electronic application with prescribed fee and distinct-person application mechanics. Rule 105 RULE TEXT / CONSOLIDATED BASE LAYER 105. Certification of copies of advance rulings pronounced by the Authority.-A copy of the advance ruling shall be certified to be a true copy of its original by any member of the Authority for Advance Ruling. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026
Certified copy of AAR ruling is authenticated by a member. Rule 106 RULE TEXT / CONSOLIDATED BASE LAYER 106. Form and manner of appeal to the Appellate Authority for Advance Ruling.-(1)An appeal against the advance ruling issued under sub-section (6) of section 98 shall be made by an applicant on the common portal in FORM GST ARA-02 and shall be accompanied by a fee of ten thousand rupees to be deposited in the manner specified in section 49. (2) An appeal against the advance ruling issued under sub-section (6) of section 98 shall be made by the concerned officer or the jurisdictional officer referred to in section 100 on the common portal in FORM GST ARA-03 and no fee shall be payable by the said officer for filing the appeal.
(3) The appeal referred to in sub-rule (1) or sub-rule (2), the verification contained therein and all the relevant documents accompanying such appeal shall be signed,- (a) inthecase of the concerned officer or jurisdictional officer, by an officer authorised in writing by such officer; and (b) in the case of an applicant, in the manner specified in rule 26. CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 AAAR appeal in ARA-02/ARA-03 with current electronic/manual fallback, fee and verification controls. Rule 107 RULE TEXT / CONSOLIDATED BASE LAYER 107. Certification of copies of the advance rulings pronounced by the Appellate Authority. - A copy of the advance ruling pronounced by the Appellate Authority for Advance Ruling and duly signed by the Members shall be sent to- (a) the applicant and the appellant; (b) the concerned officer of central tax and State or Union territory tax; (c) the jurisdictional officer of central tax and State or Union territory tax; and (d) the Authority, in accordance with the provisions of sub-section (4) of section 101 of the Act. 245 Substituted wef 01.07.2017 vide Notf no. 22/2017 - CT dt. 17.08.2017 CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 AAAR ruling certified and communicated to applicant/officers. Rule 107A RULE TEXT / CONSOLIDATED BASE LAYER
107A. Manual filing and processing. - Notwithstanding anything contained in this Chapter, in respect of any process or procedure prescribed herein, any reference to electronic filing of an application, intimation, reply, declaration, statement or electronic issuance of a notice, order or certificate on the common portal shall, in respect of that process or procedure, include manual filing of the said application, intimation, reply, declaration, statement or issuance of the said notice, order or certificate in such Forms as appended to these rules.246 246 Inserted vide Notf no. 55/2017-CT dt. 15.11.2017 CHAPTER XIII APPEALS AND REVISION CURRENT OPERATIVE CONTROL AT 29 JUNE 2026 Manual filing/processing may be used where electronic functionality is unavailable or permitted, with later electronic record as directed.
Notifications, circulars and implementation controls Instrument Date/status Why it matters CGST Act consolidation As on 11 June 2026 Sections 95-106 including National Appellate Authority provisions. Rules 103-107A and ARA forms Active rules Application, appeal, certification and manual fallback. 56th GST Council recommendations 3 September 2025 Recommended Principal Bench GSTAT also serve as National Appellate Authority; recommendation must be matched to operative notification. State AAR/AAAR constitution notifications State-specific Current members and jurisdiction are essential to valid filing. Official AAR repositories Continuing Prior rulings are searchable but binding effect remains section 103-limited. Reading rule: A circular guides administration but cannot override the Act, Rules or Gazette. Always read the principal instrument with amendments and effective-date clauses.
CA / finance / professional case studies Case 1: Question already in audit Facts: Audit memo disputes classification. Question: Can AAR admit same question? Analysis: If the same question is pending in applicant proceedings, section 98 bars admission after hearing. References: s.98(2) Case 2: Incomplete contract disclosure Facts: Applicant omits side letter affecting consideration. Question: What is consequence? Analysis: Ruling may be void ab initio for suppression/misrepresentation and limitation exclusion applies. References: s.104 Case 3: AAAR delay Facts: Appeal filed on day 45 after illness. Question: Can it be condoned? Analysis: AAAR may condone up to a further thirty days beyond initial thirty days for sufficient cause. References: s.100
Case 4: Different taxpayer reliance Facts: Another entity relies on a favourable AAR. Question: Is it binding? Analysis: No; section 103 binds only applicant and relevant officers, while facts/law unchanged. References: s.103 Case 5: Member disagreement Facts: AAR members differ. Question: What happens? Analysis: Question is referred to AAAR; if AAAR members also differ, no advance ruling is issued. References: ss.98(5),101(3) Case 6: Hypothetical restructuring Facts: No concrete transaction terms exist. Question: Should AAR be used? Analysis: Frame a genuine proposed supply with settled facts; vague hypotheticals risk unusable or inadmissible ruling. References: ss.95,97 Case 7: Rectification request Facts: Applicant wants reconsideration of legal interpretation. Question: Is section 102 suitable? Analysis: Only apparent errors can be rectified; merits review requires appropriate appellate/judicial remedy. References: s.102
Case 8: Conflicting State AAAR rulings Facts: Two GSTINs under same PAN receive conflicting AAAR orders. Question: Can national appeal be assumed available? Analysis: Sections 101A-C provide mechanism, but filing requires operative constitution/empowerment and procedure; verify current notification. References: ss.101A-C
Finin2min Q&A 1. Who can apply for advance ruling? An applicant as defined in section 95 with relevant registration/proposed registration nexus. 2. What questions are allowed? Only the categories in section 97(2). 3. Can a pending issue be taken to AAR? Not where the same question is already pending or decided in applicant proceedings. 4. What is the AAR target timeline? Ninety days from application receipt. 5. How long to appeal to AAAR? Thirty days, with up to further thirty days condonation. 6. Is an AAR ruling binding on everyone? No, only applicant and relevant officers while facts/law remain unchanged. 7. Can a ruling be rectified? Yes, apparent error within six months. 8. Can ruling be voided for suppression? Yes, from inception after hearing. 9. What if AAR members disagree? Question goes to AAAR; AAAR disagreement means no ruling. 10. Is NAAAR automatically operational? No; verify constitution/empowerment and procedural notification. 11. Are old AARs useful? They may be persuasive but are fact-specific and not universally binding. 12. What makes a strong application? Complete facts, executed/draft contracts, precise question, alternatives, jurisdiction and disclosure of proceedings.
Official source register Source Control purpose India Code - Central Goods and Services Tax Act, 2017 https://www.indiacode.gov.in/handle/123456789/15689 Official consolidated Act and amendment/commencement history. CBIC Tax Information Portal - active GST Act and Rules https://taxinformation.cbic.gov.in/ Active provision text, forms and linked amendment history. GST Council - Central Tax notifications https://gstcouncil.gov.in/cgst-tax-notification Gazette amendment instruments and effective dates. GST Council - CGST circulars https://gstcouncil.gov.in/cgst-circulars Administrative clarifications and implementation guidance. GSTAT official portal https://www.gstat.gov.in/ Bench, notices, procedure rules, orders and current institutional status. GSTAT e-Filing portal https://efiling.gstat.gov.in/ Current appeal filing manuals, acknowledgements and Presidential orders. Professional use: Preserve the source PDF/HTML, Gazette date, portal ARN, working papers and management approval supporting every material GST position. © 2026 Finin2min. All rights reserved. Educational and professional reference only; not a substitute for transaction-specific legal or tax advice. Verify latest Gazette, applicable State law and judicial developments before reliance. Authors: CA Nikhil Gupta and Kajri Singh.
F2 Finin2min GST BARE ACT & RULES SERIES · CHAPTER XVIII Appeals and Revision First appeal, revision, GSTAT constitution and procedure, High Court/Supreme Court routes, pre-deposit, representation and non-appealable orders. Legal cut-off 29 June 2026 Act as on 11 June 2026 GST26
Chapter control panel Statutory coverage Sections 107, 108, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121 Rule coverage Rules 108, 109, 109A, 109B, 109C, 110, 110A, 111, 112, 113, 113A, 114, 115, 116 Legal source hierarchy Act → Rules → Gazette notifications → binding judicial law → circulars/advisories. State overlay Use corresponding SGST/UTGST law, State notifications and local jurisdiction controls. Editorial control: The complete official section text is reproduced from the India Code consolidation. Rule cards use the official consolidated base text plus a separately identified current operative control for amendments after the base compilation. The current Gazette/active-rule page prevails.
Senior finance & tax decision flow 1 Identify appealable order and correct forum ↓ 2 Calculate communication date and condonable limit ↓ 3 Admit undisputed dues and compute statutory pre-deposit ↓ 4 File appeal, order copy and evidence index ↓ 5 Seek stay/recovery protection and hearing ↓ 6 Manage additional evidence and cross-objections ↓ 7 For GSTAT, comply with portal and Procedure Rules 2025 ↓ 8 Escalate substantial questions of law to High Court/Supreme Court
Bare Act - paragraph by paragraph Read the statutory text first, then the practical interpretation, example and risk control.
Finin2min decision path
- Frame the exact statutory question before filing.
- Check whether the question is eligible and not barred by pending/decided proceedings.
- Compile facts, contracts and proposed tax treatment completely.
- Track ruling, rectification and appellate options.
- Apply the ruling only within its statutory binding scope.
Practical case studies
Accounting, ERP & portal touchpoints
Advance-ruling conclusions should be linked to product/customer tax master data with scope, applicant/GSTIN and effective-date limitations.
Control: keep the legal conclusion separate from system configuration; document every tax-code/master change and its effective date.
Notice, litigation & evidence risk
A ruling is fact-sensitive and has a defined binding scope. Incomplete facts can undermine reliance and later consistency.
Evidence hierarchy: source transaction → books/ERP → statutory return/form → portal acknowledgement → legal working → correspondence/order.
Judicial position — how to read precedent
Start with binding Supreme Court authority, then the jurisdictional High Court, other High Courts and GSTAT where applicable. AAR/AAAR rulings are fact- and jurisdiction-sensitive and should not be presented as universal law. Always check whether a decision has been stayed, reviewed, distinguished or overtaken by amendment.
Open the Finin2min provision citator · Open the connected GST case-law module
Common mistakes to avoid
- Treating an AAR ruling as universally binding precedent.
- Filing a vague or hypothetical question.
- Omitting material contract facts.
- Applying a ruling beyond the applicant/jurisdictional scope allowed by law.
Questions professionals actually ask
- Can I get an advance ruling on this GST question?
- Apply section 106 to the exact facts and period, then verify the linked delegated law and official implementation material before concluding.
- When can a GST advance-ruling application be rejected?
- Apply section 106 to the exact facts and period, then verify the linked delegated law and official implementation material before concluding.
- Is an AAR ruling binding on everyone?
- Apply section 106 to the exact facts and period, then verify the linked delegated law and official implementation material before concluding.
- How do I appeal or rectify a GST advance ruling?
- Identify the order, service date, forum, limitation and statutory payment/pre-deposit requirements before filing.
Related law and practical resources
Implementation checklist
- Fix the transaction, taxable period and jurisdiction.
- Read every subsection, proviso, explanation and omission marker.
- Open the mapped Rule, form, notification and circular.
- Test State/UT variation and portal version.
- Preserve evidence, approvals, working papers and acknowledgements.
- Record the conclusion, assumptions, source date and reviewer.
Evidence and retention checklist
- Contract, purchase order, invoice or underlying transaction document.
- Registration, return, ledger, challan and portal acknowledgement.
- Official Act/Rule/notification version used and effective date.
- Internal tax position paper, computation and management approval.
- Correspondence, notices, replies, orders and appeal papers where applicable.
Practical Q&A
- What does section 106 regulate?
- It regulates procedure of authority, appellate authority and national appellate authority. Read the exact text, conditions, exceptions and transaction date together.
- Which subordinate law should be checked?
- No direct CGST Rule has been listed in this repository. Notifications, circulars, forms and the corresponding SGST/UTGST layer may also apply.
- What evidence should be retained?
- Preserve the contract or transaction record, invoice or form, portal acknowledgement, payment/ledger evidence, correspondence, legal working and the official source version used.
- Can portal behaviour override the statute?
- No. Portal functionality is operational evidence; legal entitlement and liability remain controlled by the Act, Rules, notifications and binding decisions.