Section 102 of CGST Act, 2017 : Section 102: Rectification Of Advance Ruling

Explanation using Example

Imagine a business, 'XYZ Traders', applied for an advance ruling under section 98 of the CGST Act regarding the tax rate applicable to a new product they are planning to launch. The Authority for Advance Rulings (AAR) provided a ruling stating that the product would attract a GST rate of 12%. However, three months after the ruling, it was discovered that there was a calculation error in the order, which should have resulted in a GST rate of 18% instead.

The AAR took note of the error apparent on the face of the record and decided to rectify the order under section 102 of the CGST Act. Before making the rectification that would increase the tax liability for 'XYZ Traders', the AAR provided them with an opportunity to be heard. This ensured that 'XYZ Traders' could present their case or any relevant information before any changes affecting their tax liability were finalized.