Section 108 of CGST Act, 2017 : Section 108: Powers Of Revisional Authority

Explanation using Example

Imagine a business owner, Mr. Sharma, who runs a manufacturing unit. He was audited by a State GST officer, and the officer concluded that Mr. Sharma had overclaimed input tax credit in his GST returns. The officer passed an order requiring Mr. Sharma to pay additional tax along with a penalty. Mr. Sharma, believing the order to be fair, did not appeal against it within the specified period.

However, the Revisional Authority, upon reviewing the case records later, notices that the officer's decision did not account for certain exemptions Mr. Sharma was eligible for, which would have reduced his tax liability. Since the decision seems erroneous and prejudicial to the interest of revenue, the Revisional Authority decides to use its power under Section 108(1) of the Central Goods and Services Tax Act, 2017, to revise the order.

Mr. Sharma is given an opportunity to present his case, and after a thorough review, the Revisional Authority modifies the order, reducing Mr. Sharma's tax liability in line with the exemptions he was originally entitled to.

This revision is done within three years from the passing of the original order, and since Mr. Sharma had not appealed the decision, the Revisional Authority's action is within the conditions laid out in Section 108(2).

The revised order is now final and binding, as per Section 108(3), unless Mr. Sharma or the tax department decides to challenge it further in the Appellate Tribunal or higher courts.