1. Why Section 96 matters
Section 96 answers one basic question: which authority is legally treated as the Authority for Advance Ruling?
The important point is that the CGST Act does not create a completely separate Central Government AAR for every State. Instead, Section 96 uses the Authority constituted under the relevant State GST Act or Union Territory GST Act and treats that authority as the AAR for that State or Union Territory for CGST purposes.
2. What people actually search for
3. Section 96 in simple language
Imagine a company in Telangana wants an advance ruling about the GST treatment of a proposed service.
The company does not normally approach a completely separate “Central GST AAR” and a “Telangana GST AAR” for the same question. The Authority constituted under the Telangana GST framework is treated as the Authority for Advance Ruling for that State for CGST purposes as well.
This design reflects the dual GST structure, where Central GST and State/UT GST operate together on the same taxable supply.
4. Exact legal structure
Section 96 is a short provision. Its operative rule is essentially one sentence:
There is no separate clause-wise machinery in Section 96 itself. The detailed constitution, qualification and appointment of members are dealt with through the relevant State/UT law and the CGST Rules.
5. Is AAR a separate Central GST office?
Not in the way many people initially assume.
Section 96 deliberately connects the CGST advance-ruling authority with the AAR constituted under the State GST or UTGST law.
This means the AAR is part of the coordinated GST architecture rather than a completely independent Central-only forum for each State.
| Common misunderstanding | Correct way to understand it |
|---|---|
| “CGST has one AAR and SGST has another AAR for the same State.” | The State/UT AAR is deemed to be the AAR for CGST purposes in that State/UT. |
| “AAR is just a GST officer's informal opinion.” | AAR is a statutory authority under the advance-ruling framework. |
6. State GST and CGST connection
The dual-GST structure is the reason Section 96 is important.
For an intra-State transaction, CGST and SGST generally apply together. Instead of creating completely separate advance-ruling authorities for each tax component, Section 96 links the CGST AAR to the authority constituted under the State GST law.
This creates a coordinated forum for the advance-ruling process.
7. Union Territory GST connection
The same principle applies to a Union Territory having its own GST law framework.
Where the Authority is constituted under the relevant Union Territory GST Act, that authority is deemed to be the Authority for Advance Ruling for that Union Territory for CGST purposes.
8. How is the AAR constituted?
Section 96 establishes which authority is recognised for CGST purposes. The detailed composition comes from the corresponding State/UT GST law and the prescribed rules.
The original GST legislative framework contemplated a two-member AAR with one Central tax member and one State tax member. The practical statutory/rule framework has therefore been designed around participation from both sides of the dual-GST administration.
The GST Council's original design also contemplated an Authority constituted for the State and consisting of one Central tax officer and one State tax officer. citeturn0search3
9. Who are the AAR members?
The detailed current qualification and appointment requirements are contained in the GST Rules.
Rule 103 of the CGST Rules historically provided that the Central Government and State Government appoint officers having at least three years' experience in the rank of Joint Commissioner as members of the AAR. The GST Council has separately considered allowing Deputy Commissioners in States/UTs where the Joint Commissioner post does not exist. citeturn0search2turn0search7
10. Rule 103 and member qualification
For a business researching AAR procedure, Section 96 should therefore be read with Rule 103.
| Question | Where to look |
|---|---|
| Which authority is the AAR? | Section 96. |
| How is it constituted? | Corresponding State/UT GST law and applicable rules. |
| Member qualification/appointment | Rule 103 and relevant appointment provisions. |
| Application form and fee | Rule 104 and Form GST ARA-01. |
| Appeal form and fee | Rule 106 and Form GST ARA-02. |
CBIC's advance-ruling rules prescribe Form GST ARA-01 for the original application and a ₹5,000 fee, while an appeal uses Form GST ARA-02 with a ₹10,000 fee. citeturn0search2
11. Which AAR has jurisdiction?
The first practical question for a taxpayer is not simply “I want an AAR ruling.” It is “which State/UT AAR is relevant to my application?”
Because Section 96 links the CGST AAR to the State/UT AAR, the applicant should identify the relevant State/UT GST registration/jurisdiction and the supply to which the question relates.
If a business has multiple GST registrations, it should not assume that one State's advance ruling automatically becomes its own ruling for every other registration.
12. Who can approach AAR?
Section 96 identifies the authority; Section 95 defines the applicant; Section 97 provides the application mechanism.
In broad terms, a person who is registered or desirous of obtaining registration may apply, provided the question is one that Section 97(2) permits and the application satisfies the procedural requirements.
Existing GST registration can support an application.
A person intending to obtain registration can fall within the definition.
13. What questions can AAR decide?
Section 96 does not list the substantive questions. That is the job of Section 97(2).
The permitted categories include:
Therefore, when preparing an AAR application, the legal question should be mapped directly to the appropriate Section 97(2) clause.
14. AAR process from application to ruling
Confirm the Section 95 definition.
Section 96 points to the State/UT AAR.
Check Section 97(2).
Prescribed form, manner and fee.
Authority examines maintainability and statutory conditions.
Applicant and concerned officer get the statutory opportunity.
AAR pronounces its ruling in writing.
Section 100 provides the appeal mechanism where available.
15. Does an AAR ruling apply to everyone?
No. This is one of the most important practical points.
Section 103 provides that an advance ruling is binding on the applicant who sought it and on the concerned/jurisdictional officer in respect of that applicant, subject to the statutory conditions.
Therefore, a ruling issued to one company does not automatically become a universally binding GST rule for every other taxpayer.
16. AAR vs AAAR
| Point | AAR | AAAR |
|---|---|---|
| Role | Original advance ruling | Appellate forum |
| Provision | Section 96 | Section 99 |
| Application/appeal | Section 97 | Section 100 |
| Form | ARA-01 | ARA-02 |
| Typical fee | ₹5,000 | ₹10,000 |
The forms and fees are prescribed through the GST Rules. citeturn0search2
17. Construction and infrastructure examples
Works contract
A contractor wants an advance ruling on classification or GST rate for a proposed project. First identify the State/UT AAR under Section 96 and then frame the question under Section 97(2).
HAM project
An infrastructure company has a complex contractual model and wants clarity on valuation or tax liability. The application should identify the exact statutory question rather than request a general opinion on the entire project.
Government project
A contractor working for a government department wants clarity on the applicability of a notification. The notification question can fall within Section 97(2), subject to the other requirements.
Multiple GST registrations
A company operating construction projects in several States should separately consider which registration, State/UT authority and facts are covered by the proposed ruling.
18. Detailed practical cases
Case 1 — Telangana company
A registered company in Telangana seeks a qualifying advance ruling. The Telangana AAR framework is the relevant authority for CGST purposes under Section 96.
Case 2 — Karnataka branch
A separate Karnataka GST registration has different facts. The company should not assume a ruling concerning another State registration automatically covers the Karnataka registration.
Case 3 — Unregistered applicant
A person desirous of obtaining registration may fall within the applicant definition, subject to Section 97 and procedure.
Case 4 — Classification question
A manufacturer asks whether a new product falls under a particular tariff heading. This is a Section 97(2)(a) type question.
Case 5 — Notification question
A contractor asks whether a particular exemption/rate notification applies. This is potentially within Section 97(2)(b).
Case 6 — Valuation question
A complex service arrangement creates uncertainty about value of supply. Section 97(2)(c) should be considered.
Case 7 — ITC question
A business asks whether ITC on a specified inward supply is admissible. This falls within the category in Section 97(2)(d), subject to facts.
Case 8 — Liability question
A taxpayer asks whether it is liable to pay GST on a specified activity. Section 97(2)(e) is relevant.
Case 9 — Registration question
A business wants to determine whether registration is required. Section 97(2)(f) covers this category.
Case 10 — Supply question
A business wants to know whether an activity constitutes a supply. Section 97(2)(g) may apply.
Case 11 — Existing ruling of another taxpayer
A taxpayer finds a similar AAR ruling and wants to rely on it. Section 103 must be considered because the binding effect is applicant-specific.
Case 12 — Appeal
The applicant disagrees with the AAR. The next statutory route is the appeal framework under Section 100, subject to the prescribed conditions and time limits.
19. Important limitations
20. Professional preparation workflow
Map the relevant registration and State/UT.
Apply Section 96.
Write the exact commercial question.
Identify the statutory clause.
Contract, invoices, flowchart and transaction structure.
Act, Rules, notifications and relevant rulings.
Use prescribed form and fee.
Keep submissions tied to the question asked.
Check reasoning and exact scope.
Use Section 100 where appropriate.
21. Documents checklist
22. Common mistakes
- Thinking there is a separate Central-only AAR for every State.
- Ignoring the State/UT jurisdiction.
- Asking a question outside Section 97(2).
- Confusing AAR with AAAR.
- Assuming another taxpayer's ruling automatically binds the applicant.
- Submitting incomplete facts.
- Failing to distinguish an existing supply from a proposed supply.
- Ignoring the relevant GST registration when the company has multiple registrations.
- Relying on old AAR procedural information without checking current Rules.
- Treating an AAR ruling like a notification applicable to the whole industry.
23. Legislative and Council development
24. Current practical position
Section 96 remains a short but important coordination provision. Current statutory text continues to provide that the State/UT AAR is deemed to be the AAR for that State/UT for CGST purposes. citeturn0search6
Advance-ruling authorities continue to issue rulings in 2026. The GST Council's current advance-ruling database records recent 2026 AAR orders involving classification, notifications, rates and taxability questions. citeturn0search5
25. Section 96 GST FAQs
What is Section 96 of the CGST Act?
Section 96 identifies the Authority for Advance Ruling for CGST purposes in each State or Union Territory.
What is AAR in GST?
AAR means Authority for Advance Ruling.
Is AAR a Central or State authority?
Section 96 links the CGST AAR to the Authority constituted under the relevant State GST or UTGST law.
Which authority gives advance ruling for CGST?
The AAR constituted under the relevant State or UT GST law is deemed to be the AAR for CGST purposes in that State or UT.
Can AAR decide CGST and SGST issues?
The statutory framework is designed around the dual GST system, and the State/UT AAR is deemed to be the CGST AAR for that State/UT. The precise scope of a ruling depends on the Act and facts.
Who are the AAR members?
The detailed qualification and appointment framework is provided through the GST Rules and the corresponding State/UT provisions.
How much does a GST advance-ruling application cost?
Under the prescribed CGST Rules, Form ARA-01 carries a fee of ₹5,000. Always verify the current Rules before filing.
What is the difference between AAR and AAAR?
AAR gives the original advance ruling; AAAR is the appellate authority under the Chapter XVII framework.
Does an AAR ruling apply to all taxpayers?
No. Section 103 generally makes the ruling binding on the applicant and the concerned/jurisdictional officer in respect of that applicant.
Can a company with multiple GST registrations use one AAR ruling everywhere?
Do not assume so. The binding effect and facts must be analysed with reference to the applicant and relevant jurisdiction.
Can an unregistered person approach AAR?
A person desirous of obtaining registration is included in the definition of applicant under Section 95, subject to the other statutory requirements.
What questions can be asked to AAR?
Section 97(2) specifies the permitted categories, including classification, notifications, time/value of supply, ITC, liability, registration and whether an activity constitutes a supply.
Is Section 96 itself an application provision?
No. Section 96 identifies the authority. Section 97 deals with the application and permissible questions.
27. Key takeaways
- Section 96 tells you who the GST Authority for Advance Ruling is.
- The State/UT AAR is deemed to be the AAR for CGST purposes in that State/UT.
- There is not a separate Central-only AAR for each State for the same CGST advance-ruling framework.
- The detailed composition and member qualifications are found in the Rules and corresponding State/UT framework.
- Rule 103 is important when researching AAR member qualifications.
- Section 97 determines what questions can actually be taken to AAR.
- Section 103 determines the binding effect; an AAR ruling is not automatically a nationwide rule.
- Businesses with multiple GST registrations should carefully map the relevant State/UT and applicant before filing.
- A good advance-ruling application begins with a precise Section 97(2) question and complete facts.
Disclaimer: This guide is for practical educational use. Advance-ruling procedure, member appointments and forms can change through amendments and notifications. Verify the current CGST Rules and the relevant State/UT GST framework before filing.