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Revisional Authority under GST Law | Power to Examine and Revision Order

Know details about Revisional Authority under GST law. Definition, meaning, structure, appeals and revision orders made by RA.

We are discussing Revisional Authority (RA) under GST Law. The provisions of appeals and revision under CGST Act have also been made applicable to IGST Act vide section 20 of the IGST Act.

Revisions are made by evisional Authority for any decision or order Passed by an Officer subordinate to Revisional authority. Thereafter, aggrieved person may appeal to High Court if he/she is aggrieved by the revision order passed by Revisional Authority. Finally, you may appeal to Supreme Court against order passed by High Court.

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Revisional Authority under GST Law | CGST, SGST, UTGST and IGST

CGST Act comprises of 174 sections out of which there are seven sections which are related to Revisional Authority. These related sections are:

  • Adjudicating Authority under section 2(4) of CGST Act 2017
  • Revisional Authority under section 2(99) of CGST Act 2017
  • Period of retention of accounts under Section 36 of CGST Act 2017
  • Powers of Revisional Authority under Section 108 of CGST Act 2017
  • Constitution of Appellate Tribunal and Benches thereof under Section 109 of CGST Act 2017
  • Appeals to Appellate Tribunal under Section 112 of CGST Act 2017
  • Orders of Appellate Tribunal under Section 113 of CGST Act 2017

Revisional Authority is not Adjudicating Authority [Section 2(4)]:

Revisional Authority is not Adjudicating Authority. Adjudicating Authority means any authority, appointed or authorised to pass any order or decision under CGST Act, but does not include the Revisional Authority.

Definition of Revisional Authority [Section 2(99)]:

Revisional Authority means an authority appointed or authorised for revision of decision or orders as referred to in section 108 of the CGST Act.

Period of Retention of Accounts [Section 36]:

Every registered person is required to keep and maintain books of account or other records until the expiry of 72 months from the due date of furnishing of annual return for the year pertaining to such accounts and records.

However, a registered person, who is a party to revision before any Revisional Authority whether filed by him or by the Commissioner, shall retain the books of account and other records pertaining to the subject matter of such revision for a period of ONE YEAR after final disposal of such revision or 72 Months, whichever is later.

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Power to Examine and Stay Order or Decision [Section 108]:

The power of revision is subject to the condition that non-appealable orders and decisions under section 121 cannot be revised. The Revisional Authority may call for and examine the record of any proceedings:

  • On his own motion; or
  • Upon information received by him; or
  • On request from the Commissioner of State tax; or
  • On request from the Commissioner of Union territory tax.

Record shall include all records relating to any proceedings under CGST Act available at the time of examination by the Revisional Authority.

Revisional Authority examine and stay the operation of any decision or order if he considers that such decision or order passed by any officer subordinate to him under the CGST Act or under the SGST Act or under the UTGST Act is:

  1. Erroneous in so far as it is prejudicial to the interest of revenue;
  2. Illegal; or
  3. Improper; or
  4. Not taken into account certain material facts (whether available at the time of issuance of the such order or not); or
  5. In consequence of an observation by the C&AG.

Such stay shall be made for such period as he deems fit. The concerned person shall be given an opportunity of being heard. Revisional Authority after making necessary inquiry pass an order including enhancing or modifying or annulling the said decision or order.

Note that decision shall include intimation given by any officer lower in rank than the Revisional Authority.

Revision not allowed in Certain Cases [Section 108(2)]:

The Revisional Authority shall not exercise any power to make revision of any order or decision if —

  • 6 Months has not yet expired; or
  • The order was already under an appeal; or
  • The order has already been taken for revision; or
  • The order has already been examined.
  • More than 3 years have expired after the date of decision or order.

However, the Revisional Authority may pass an order on any point which has not been raised and decided in an appeal. Such order must be passed before ONE YEAR from the date of the order in such appeal or before 3 years, whichever is later.

Every revision order passed by Revisional Authority shall be final and binding on the parties subject to further appeal to:

  1. Appellate Tribunal under section 113; or
  2. High Court under section 117; or
  3. Supreme Court under section 118.

Calculation of Period of Limitation [Section 108(4) & 108(5)]:

Revision of any order or decision shall not be made before expiry of 6 months or after expiry of 3 years after the date of decision or order.

Note that if the order is stayed by the order of a Court or Tribunal, the period of such stay will be excluded in computing the period of limitation of 6 Months or 3 Years.

If the decision or order involves an issue on which:

  • The Appellate Tribunal or the High Court has given its decision in some other proceedings; and
  • An appeal to the High Court or the Supreme Court against such decision is pending,

the period spent between:

  • the date of the decision of the Appellate Tribunal and the date of the decision of the High Court; or
  • the date of the decision of the High Court and the date of the decision of the Supreme Court

shall be excluded in computing the period of limitation of 6 Months or 3 Years where proceedings for revision have been initiated by way of issue of a notice under this section.

Constitution of Appellate Tribunal [Section 109(1), 109(5) & 109(7)]:

The Central Government shall constitute GST Appellate Tribunal for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority.

The National Bench or Regional Benches of the Appellate Tribunal shall have jurisdiction to hear appeals against the orders passed by the Revisional Authority in the cases where one of the issues involved relates to the place of supply.

Whereas, the State Bench or Area Benches shall have jurisdiction to hear appeals against the orders passed by the Revisional Authority in the cases involving matters other than the place of supply.

Appeal against Revisional Authority [Section 112(3)]:

The Commissioner may call for and examine the record of any order passed by the Revisional Authority under CGST Act or the SGST Act or the UTGST Act for the purpose of satisfying himself as to the legality or propriety of the said order.

After examination the commissioner may direct any officer subordinate to him to apply to the Appellate Tribunal within 6 months for determination of specified points.

Orders of Appellate Tribunal [Section 113(1) & 113 (5)]:

The Appellate Tribunal may pass orders confirming, modifying or annulling the decision or order appealed against. However, parties to the appeal shall be given an opportunity of being heard before making such orders.

Appellate Tribunal may refer the case back to the Revisional Authority or to the original adjudicating authority, with such directions as it may think fit, for a fresh adjudication or decision after taking additional evidence, if necessary.

The Appellate Tribunal shall send a copy of every order passed to the Revisional Authority, or the original adjudicating authority, as the case may be, the appellant and the jurisdictional Commissioner or the Commissioner of State tax or the Union territory tax.

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