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Indirect Tax Laws and Practice · Dispute Resolution Mechanism under GST

Appellate Authority for Advance Ruling under GST

Updated 11 October 2026 · Fact-checked

The Appellate Authority for Advance Ruling (AAAR) hears appeals against an advance ruling. The applicant files FORM GST ARA-02 with a fee of ₹10,000; the officer files FORM GST ARA-03 with no fee. After a hearing, it confirms or modifies the ruling within ninety days of the appeal being filed.

Understand Appellate Authority for Advance Ruling

An advance ruling is a binding clarification a person gets before undertaking a supply, so tax uncertainty is removed early. The first ruling is pronounced by the Authority for Advance Ruling. The Appellate Authority is the next forum if someone is unhappy with that ruling.

The appeal can come from two sides. The applicant can appeal. The concerned officer or the jurisdictional officer can also appeal. The Rules prescribe a different form for each, and only the applicant pays a fee.

Once an appeal is filed, the Appellate Authority must give the parties a chance to be heard. It may then pass any order it thinks fit, confirming or modifying the ruling. It must pass the order within ninety days of the appeal being filed (or of a reference being made under section 98(5)).

If the members of the Appellate Authority differ on a point, the law treats it as if no advance ruling can be issued on that question. The Act also lets a ruling be declared void if it was obtained by fraud, suppression of material facts or misrepresentation. And where two or more States give conflicting rulings, an appeal lies to the National Appellate Authority.

The topic is mostly numbers and forms. Learn who files what, in which form, with what fee, and within what time.

Key rules to remember

Appeal by applicant (Rule 106(1))
FORM GST ARA-02 + fee ₹10,000, filed on the common portal
Fee is deposited in the manner specified in section 49. The appeal is against a ruling issued under section 98(6).
Appeal by officer (Rule 106(2))
FORM GST ARA-03, no fee
Filed by the concerned officer or the jurisdictional officer referred to in section 100.
Signing of appeal (Rule 106(3))
Officer: signed by an officer authorised in writing by that officer. Applicant: signed as per rule 26
Applies to the appeal, its verification and the accompanying documents.
Order of Appellate Authority (Section 101(1)-(2))
Hearing, then confirm or modify the ruling; order within 90 days of filing the appeal
The 90 days run from the date of filing the appeal under section 100 or a reference under section 98(5).
Difference of opinion (Section 101(3))
Members differ, so deemed that no advance ruling can be issued on that question
Applies to points in the appeal or reference.
Copy of ruling (Section 101(4))
Sent to applicant, concerned officer, jurisdictional officer and the Authority
The copy is duly signed by the Members and certified as prescribed.
Appeal to National Appellate Authority (Section 101B)
Conflicting rulings of two or more States/UTs: 30 days for applicant; 90 days for authorised officer; condonation up to a further 30 days
Time is counted from communication of the last of the conflicting rulings. The applicant must be a distinct person under section 25.
Void ruling (Section 104)
Fraud, suppression of material facts or misrepresentation, so ruling void ab initio after a hearing
The period from the ruling to the void order is excluded when computing limits under sections 73, 74 and 74A.

How to solve Appellate Authority for Advance Ruling questions

Use this sequence for any question on appeals against advance rulings.

  1. 1Identify who is appealing: the applicant, or the concerned or jurisdictional officer.
  2. 2Pick the form and fee: ARA-02 with ₹10,000 for the applicant; ARA-03 with no fee for the officer.
  3. 3Check whether the appeal is against a ruling under section 98(6) of the first-level Authority, or whether it involves conflicting rulings of different States, which points to section 101B.
  4. 4Apply the time rule. For section 101 the order is due within 90 days of filing. For section 101B apply 30 or 90 days plus the 30-day condonation.
  5. 5Check the hearing: the parties must get an opportunity of being heard before the order.
  6. 6Note the outcome possible: confirm, modify, or no ruling if members differ.
  7. 7If fraud or suppression is mentioned, apply section 104 and add the exclusion of time.
  8. 8Write a clear conclusion with the section or rule number.

Quickest way: Who, form, fee, days

When to use it: Use this for MCQs and short case-based questions.

  1. Applicant: ARA-02, ₹10,000.
  2. Officer: ARA-03, nil fee.
  3. Appellate order: within 90 days of filing.
  4. Members differ: no ruling on that question.
  5. Conflicting State rulings: National Appellate Authority, 30 days (applicant) or 90 days (officer), plus up to 30 days if sufficient cause.
  6. Fraud or suppression: ruling void ab initio after a hearing.

Common mistakes in Appellate Authority for Advance Ruling

  • Saying the officer must pay the ₹10,000 fee too.

    Students remember the fee but forget that it is tied to the applicant's appeal.

    Fix: Link the fee to ARA-02 only. Rule 106(2) says no fee is payable by the officer.

  • Treating the 90 days of section 101 as the time limit to file the appeal.

    The number 90 appears in both section 101 and the officer proviso of 101B.

    Fix: In section 101, 90 days is the period for the Appellate Authority to pass its order. Filing limits for section 101B are 30 and 90 days.

  • Saying that if members differ, the lower ruling stands.

    Students assume a default outcome in favour of the first ruling.

    Fix: Section 101(3) deems that no advance ruling can be issued on that question.

  • Declaring a ruling void without a hearing.

    Students focus on fraud and forget the proviso.

    Fix: Section 104 requires an opportunity of being heard before the order is passed.

  • Counting the 101B time from the first conflicting ruling.

    Students read it as the date of the earliest ruling.

    Fix: The Explanation counts it from communication of the last of the conflicting rulings.

  • Applying the appeal withdrawal rule 109C to advance ruling appeals.

    Both deal with appeals and withdrawal.

    Fix: Rule 109C covers appeals in FORM GST APL-01 or APL-03 against orders under section 107, not ARA appeals.

Worked examples

Example 1

Ananya Textiles Pvt Ltd, Surat, received an advance ruling against it. Separately, the jurisdictional officer is also dissatisfied with a part of the ruling. State the form and fee for each appeal to the Appellate Authority.

Show the solution
  1. Ananya Textiles is the applicant, so Rule 106(1) applies: appeal on the common portal in FORM GST ARA-02.
  2. The fee is ₹10,000, deposited in the manner specified in section 49.
  3. The jurisdictional officer files under Rule 106(2) in FORM GST ARA-03.
  4. No fee is payable by the officer.
  5. The officer's appeal is signed by an officer authorised in writing by that officer, and the applicant's is signed as per rule 26.

Answer: The applicant files FORM GST ARA-02 with ₹10,000. The officer files FORM GST ARA-03 with no fee.

Example 2

An appeal against an advance ruling was filed by Kaveri Foods Ltd on 5 March. The two members of the Appellate Authority differ on one of the two questions. What is the position on that question, and by when must the order be passed?

Show the solution
  1. Section 101(2): the order must be passed within ninety days of filing the appeal, so by 90 days from 5 March (counting 26 days left in March, 30 in April, 31 in May, which is 87 days at 31 May, then 3 more days in June, so 3 June).
  2. The parties must first be given an opportunity of being heard (section 101(1)).
  3. Where members differ on a point, section 101(3) deems that no advance ruling can be issued on that question.
  4. On the other question, where the members agree, the Authority confirms or modifies the ruling.
  5. A signed and certified copy goes to the applicant, concerned officer, jurisdictional officer and the Authority (section 101(4)).

Answer: No advance ruling can be issued on the question where members differ. The order is due within 90 days of filing, that is by 3 June.

Exam tips

  • Memorise the form-fee pairs: ARA-02 with ₹10,000 and ARA-03 with nil fee. MCQs often test this.
  • Keep three different numbers apart: 90 days for the order, 30 days for an applicant's 101B appeal, 90 days for an officer's 101B appeal.
  • In case questions, check for words like fraud, suppression or misrepresentation, and bring in section 104 with the hearing requirement.
  • Quote the section or rule number in written answers; it shows you know the source.
  • Do not spend time on ARA appeals under rule 109C. That rule belongs to ordinary appeals under section 107.

Practice questions from Dispute Resolution Mechanism under GST

Appellate Authority for Advance Ruling in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Appellate Authority for Advance Ruling: frequently asked questions

What is the fee for an appeal against an advance ruling under GST?

An applicant pays ₹10,000 when filing FORM GST ARA-02 on the common portal. The concerned or jurisdictional officer files FORM GST ARA-03 and pays no fee.

Within what time must the Appellate Authority pass its order?

Section 101(2) requires the order within ninety days from the date of filing the appeal or a reference under section 98(5). It must first give the parties a chance to be heard.

When can an advance ruling be declared void?

The Authority, Appellate Authority or National Appellate Authority can declare a ruling void ab initio if it was obtained by fraud, suppression of material facts or misrepresentation. A hearing must be given first, and the Act then applies as if the ruling was never made.

What is the time limit to appeal to the National Appellate Authority?

Under section 101B, an applicant has thirty days and an authorised officer has ninety days, counted from communication of the last of the conflicting rulings. A further period of up to thirty days can be allowed for sufficient cause.