What does this Section Say?

Section 106 of the CGST Act provides that the Authority for Advance Ruling (AAR), Appellate Authority for Advance Ruling (AAAR), and National Appellate Authority may regulate their own procedures, subject to the provisions of the CGST Act and the rules made thereunder.

The purpose of this section is to give these authorities procedural flexibility. GST disputes can vary significantly in complexity. Some cases may involve simple classification issues, while others may require examination of technical documents, contracts, expert opinions, and multiple hearings. A rigid procedure may not be suitable for every case.

Accordingly, the authorities can determine matters such as the manner of filing documents, scheduling of hearings, submission of written arguments, calling for additional records, and conduct of proceedings. They may also adopt procedures that promote speedy disposal of applications while ensuring fairness to both the taxpayer and the department.

However, this flexibility does not mean arbitrary action. The authorities must still follow the principles of natural justice, meaning that parties should receive notice of proceedings, get an opportunity to present their case, and be heard before any adverse decision is taken.

Section 106 therefore balances efficiency with fairness. It allows the Advance Ruling mechanism to function smoothly without being burdened by overly technical procedural requirements, while still protecting the rights of taxpayers and ensuring transparent decision-making.

In practice, this provision helps authorities manage cases effectively and deliver timely rulings on important GST issues.

Practical Example

An authority may fix timelines for submission of documents, conduct virtual hearings, and call for additional evidence before passing an Advance Ruling.

Key Points

• Authorities can regulate their own procedures.
• Flexibility is subject to the CGST Act and Rules.
• Natural justice must be followed.
• Helps in speedy and efficient disposal of cases.
• Suitable for varied GST disputes.

In One Line

Section 106 allows Advance Ruling authorities to frame practical procedures while ensuring fairness and natural justice.