Section 15 of UTGST Act 2017: Constitution of Authority for Advance Ruling

Provisions under Section 15 of the Union Territory Goods and Services Tax (UTGST) Act, 2017 relating to “Constitution of Authority for Advance Ruling”, are as under:

Section 15 of UTGST Act 2017: Constitution of Authority for Advance Ruling (CHAPTER VII – ADVANCE RULING)

(1) The Central Government shall, by notification, constitute an Authority to be known as the (name of the Union territory) Authority for Advance Ruling:

Provided that the Central Government may, on the recommendations of the Council, notify any Authority located in any State or any other Union territory to act as the Authority for the purposes of this Act.

(2) The Authority shall consist of—

(i) one member from amongst the officers of central tax; and

(ii) one member from amongst the officers of Union territory tax, to be appointed by the Central Government.

(3) The qualifications, the method of appointment of the members and the terms and conditions of their service shall be such as may be prescribed.

Amendments History:

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Commentary on Section 15 of UTGST Act, 2017

Section 15 of the Union Territory Goods and Services Tax (UTGST) Act, 2017, outlines the constitution of an Authority for Advance Ruling (AAR). This commentary will help explain the provisions under this section:

Section 15(1) of UTGST Act, 2017: Establishment of the Authority for Advance Ruling (AAR)

Under Section 15(1), the Central Government is responsible for establishing an AAR for each Union Territory by issuing a notification. The AAR’s purpose is to provide clarification on various tax-related matters, ensuring greater transparency and reducing disputes.

With regard to Authority’s Jurisdiction, the Central Government may also, based on the Council’s recommendations, authorize an existing AAR from another State or Union Territory to serve as the AAR for the concerned Union Territory.

Section 15(2) of UTGST Act, 2017: Composition of the AAR

Section 15(2) specifies that the AAR shall consist of two members:

a) One member from the officers of central tax, and

b) One member from the officers of Union territory tax.

Both members are appointed by the Central Government.

Section 15(3) of UTGST Act, 2017: Qualifications and Terms of Service

Section 15(3) states that the qualifications, method of appointment and terms and conditions of service for AAR members will be prescribed by the government. This ensures that the members have the necessary expertise and experience to provide accurate and reliable advance rulings on tax matters.

In summary, Section 15 of the UTGST Act, 2017, establishes the Authority for Advance Ruling (AAR) to provide clarity on tax-related matters within Union Territories. It also outlines the composition of the AAR and states that the qualifications and terms of service for its members will be determined by the government. This provision aims to promote transparency and reduce tax disputes by providing taxpayers with clear guidance on tax matters.

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Note: The UTGST Act 2017 has been notified vide GOI Notification dated 12/04/2017, which has subsequently been amended  through UTGST (Amendment) Act 2018, Finance Act 2019, Finance Act 2020, Finance Act 2021, Finance Act, 2022 and Finance Act, 2023 including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective UTGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.