Section 105 of CGST Act - Powers of Authority and Appellate Authority

Section 105 of the Central Goods and Services Tax Act, 2017 gives the Authority for Advance Ruling and the Appellate Authority for Advance Ruling specified powers comparable to those of a civil court. These powers support the effective conduct of advance ruling proceedings, including discovery, inspection, attendance of persons, examination on oath and production of books and records.

Text of Section 105 of the CGST Act

Meaning and scope of Section 105

Section 105 forms part of Chapter XVII - Advance Ruling of the CGST Act. It is primarily a procedural and evidentiary provision. It does not itself decide whether a particular supply is taxable or determine the rate of GST. Instead, it equips the Authority and the Appellate Authority with powers necessary to conduct advance ruling proceedings effectively.

The expressions "Authority" and "Appellate Authority" are defined for Chapter XVII by Section 95 of the CGST Act. The Authority for Advance Ruling is dealt with in Section 96, while the Appellate Authority for Advance Ruling is dealt with in Section 99.

Civil court powers under Section 105(1)

For the matters specifically listed in Section 105(1), the Authority and Appellate Authority have the powers of a civil court under the Code of Civil Procedure, 1908. The provision identifies three principal categories of power.

1. Discovery and inspection

The Authority or Appellate Authority may exercise civil court powers concerning discovery and inspection where these are required for an advance ruling proceeding. This facilitates examination of relevant material instead of limiting the proceeding only to documents voluntarily produced at the outset.

2. Attendance and examination on oath

Section 105 expressly enables the Authority or Appellate Authority to enforce the attendance of a person and examine that person on oath. This power supports proper fact-finding where oral evidence or clarification is necessary for deciding the matter before the authority.

3. Commissions and production of records

The provision also covers issuing commissions and compelling the production of books of account and other records. Books, documents and business records may therefore become relevant where the question before the Authority cannot properly be determined solely from the application and written submissions.

Effect of Section 105(2)

Sub-section (2) gives proceedings before the Authority and Appellate Authority an important legal character. The provision deems the Authority or Appellate Authority to be a civil court for the limited statutory purpose specified in Section 105(2), and treats proceedings before them as judicial proceedings for the criminal-law provisions referred to in the section.

The deeming provision is significant because statements, evidence and conduct during an advance ruling proceeding are not treated merely as informal administrative exchanges. Parties should therefore ensure that applications, supporting documents, statements and evidence submitted before the Authority are accurate and complete.

Section 105 in the Advance Ruling framework

How Section 105 relates to other Advance Ruling provisions

Section 105 should be read as part of the complete statutory scheme for advance rulings. In particular:

• Section 95 defines important expressions used in Chapter XVII, including "advance ruling", "applicant", "Authority" and "Appellate Authority".
• Section 96 deals with the Authority for Advance Ruling.
• Section 97 specifies the application for advance ruling and the questions on which an advance ruling may be sought.
• Section 98 prescribes the procedure on receipt of an application.
• Section 99 deals with the Appellate Authority for Advance Ruling.
• Section 100 governs appeals to the Appellate Authority.
• Section 101 deals with orders of the Appellate Authority.
• Section 102 concerns rectification of an advance ruling.
• Section 103 determines the applicability and binding effect of an advance ruling.
• Section 104 deals with circumstances in which an advance ruling may be declared void ab initio.
• Section 106 authorises the Authority and Appellate Authority, subject to Chapter XVII, to regulate their own procedure.

Practical significance

A person participating in an advance ruling proceeding should not assume that the Authority is confined to the documents accompanying the original application. Section 105 gives the Authority and Appellate Authority statutory powers to obtain evidence and records relevant to the proceeding.

Applicants should therefore maintain supporting invoices, agreements, books of account, technical material and other relevant records in an organised form. Statements and documentary material submitted during the proceeding should also be consistent with the facts disclosed in the advance ruling application.

Related CGST Rules

The advance ruling provisions of the CGST Act operate with the corresponding provisions of the Central Goods and Services Tax Rules, 2017. The rules prescribe, among other matters, the forms and procedure for applications and appeals. An application for an advance ruling is generally made in FORM GST ARA-01, while an applicant's appeal to the Appellate Authority is made in FORM GST ARA-02, subject to the applicable statutory provisions and rules.

Frequently asked questions

What does Section 105 of the CGST Act deal with?

Section 105 deals with the powers of the Authority for Advance Ruling and the Appellate Authority for Advance Ruling. It grants specified powers of a civil court for discovery, inspection, attendance, examination on oath, commissions and production of books and records.

Does the Authority for Advance Ruling have all powers of a civil court?

Section 105(1) confers civil court powers for the particular purposes expressly listed in the provision. The scope of the section should therefore be understood according to its statutory wording rather than as an unrestricted transfer of every power exercisable by a civil court.

Can the Authority require production of books of account?

Yes. Section 105(1) expressly includes the power to compel production of books of account and other records for the purposes covered by the section.

Can a person be examined on oath?

Yes. One of the powers specifically mentioned in Section 105(1) is enforcing the attendance of a person and examining that person on oath.

Are proceedings before the Authority judicial proceedings?

Section 105(2) expressly provides for proceedings before the Authority or Appellate Authority to be deemed judicial proceedings for the purposes specified in that sub-section.

Official references

For the statutory text, amendments, rules, notifications and current GST administration material, readers should verify the provision from official Government sources before relying on it in a proceeding.

Official resources: CBIC GST and India Code.