Section 101 of CGST Act, 2017 : Section 101: Orders Of Appellate Authority

Explanation using Example

Imagine a business, ABC Pvt. Ltd., that has been charged with additional GST by the tax authorities due to a misinterpretation of the tax rates applicable to their products. ABC Pvt. Ltd. files an appeal with the Appellate Authority under Section 100 of the Central Goods and Services Tax Act, 2017, challenging this decision.

The Appellate Authority, after hearing both the tax authorities and representatives from ABC Pvt. Ltd., decides within 90 days that the correct GST rate was indeed lower than what was charged. Consequently, the original ruling is modified, and ABC Pvt. Ltd. is entitled to a refund for the excess tax paid.

In this scenario, Section 101(1) allowed the Appellate Authority to modify the ruling upon hearing the appeal, and Section 101(2) ensured that the decision was made within a specified timeframe. Section 101(4) ensures that ABC Pvt. Ltd., along with all relevant parties, receives a certified copy of the ruling.