GST Revisional Authority: Powers & Process

Goods and Services Tax (GST) is a relatively recent indirect tax framework in India. Although its legislation encompasses the entire indirect tax structure, from tax imposition to asset seizure for enforcement, its implementation has been incremental. The GST system is gradually being introduced, and with the establishment of a Revisional Authority, it now aligns with its direct tax counterparts.

What is a GST Revisional Authority?

A Revisional Authority possesses the power to request and review records of proceedings conducted by a subordinate officer. This authority can also initiate further inquiries as deemed appropriate. Its role includes revising the original order by issuing a new order that overrides the subordinate officer’s decision, primarily to protect revenue interests.

Who can Initiate Action with the GST Revisional Authority?

The Revisional Authority holds discretion regarding which matters it chooses to address. Only the Commissioner of State or Union Territory Tax can request the Revisional Authority to exercise its powers. Taxpayers do not have the right to directly approach this authority; however, they must be given an opportunity to be heard if an order is anticipated against them.

When can the GST Revisional Authority Exercise its Powers?

The GST Revisional Authority will only activate its powers if it determines that a decision or order issued by a subordinate officer is flawed and detrimental to revenue interests, specifically if it is:

• Unlawful;
• Incorrect;
• Fails to consider significant factual information.

Therefore, individuals can only seek intervention from the Revisional Authority if they believe a subordinate officer’s order is erroneous and negatively impacts government revenue.

Who Holds the Authority to Revise Decisions or Orders?

The individuals authorized to revise decisions or orders are outlined below:For decisions or orders passed by | Authorised Revisional Authority—|—Additional or Joint Commissioner | Principal Commissioner or CommissionerDeputy Commissioner or Assistant Commissioner or Superintendent | Additional or Joint Commissioner

Limitations on the Revisional Authority’s Power

The Revisional Authority is prevented from exercising its powers in several scenarios:

• If the relevant order is currently subject to an appeal before an Appellate Authority, Appellate Tribunal, High Court, or Supreme Court. Nevertheless, the Revisional Authority can issue an order regarding any point not raised in such an appeal, provided it is within one year from the appeal order date.
• The Commissioner has a six-month window from the date of an order to instruct a subordinate officer to file an appeal with the Appellate Authority, if necessary. The Revisional Authority cannot act until this six-month period expires. However, it can issue an order on any point not addressed in such an appeal within three years from the date of the appeal order.
• If more than three years have elapsed since the original order or decision intended for revision was issued.
• If the particular order has already undergone a previous revision.
• If the Revisional Authority has already issued a definitive order on the matter.

Timeline for Engaging with the GST Revisional Authority?

The Revisional Authority cannot consider any case where more than three years have passed since the date of the original order or decision. Furthermore, if the Revisional Authority intends to issue an order on a point not previously raised or subject to an appeal before an Appellate Authority, Appellate Tribunal, High Court, or Supreme Court, it must do so within one year from the date of that appeal’s order. Consequently, the Revisional Authority must be engaged within these specified timelines.

However, when calculating this time limit, certain periods are excluded if the decision or order under revision pertains to an issue where the Appellate Tribunal or High Court has rendered a decision in separate proceedings, and an appeal against that decision to the High Court or Supreme Court is still pending. The periods not taken into account are:

• The duration between the Appellate Tribunal’s decision date and the High Court’s decision date; or
• The duration between the High Court’s decision date and the Supreme Court’s decision date.

FAQs on the GST Revisional Authority

• What is the GST Revisional Authority?
  An authority that can call for and review a subordinate officer’s records and revise an order that is illegal, incorrect, or ignores material facts, to protect revenue. For related remedies, see our guide on GST appeals procedures and deadlines.
• Who can initiate action before the Revisional Authority?
  Only the Commissioner of State or Union Territory Tax. Taxpayers cannot approach it directly, but must be given a hearing if an order may be passed against them.
• When can the Revisional Authority revise an order?
  When a subordinate officer’s order is unlawful, incorrect, or fails to consider significant facts, and is prejudicial to revenue.
• What is the time limit for revision?
  It cannot revise an order more than three years after the original order; for certain appeal-related points, it must act within one year of the appeal order.
• Who revises whose orders?
  Orders by an Additional/Joint Commissioner are revised by the Principal Commissioner or Commissioner; orders by a Deputy/Assistant Commissioner or Superintendent are revised by an Additional/Joint Commissioner.