Section 16 of UTGST Act 2017: Constitution of Appellate Authority for Advance Ruling

Provisions under Section 16 of the Union Territory Goods and Services Tax (UTGST) Act, 2017 relating to “Constitution of Appellate Authority for Advance Ruling”, are as under:

Section 16 of UTGST Act 2017: Constitution of Appellate Authority for Advance Ruling (CHAPTER VII – ADVANCE RULING)

(1) The Central Government shall, by notification, constitute an Appellate Authority to be known as the (name of the Union territory) Appellate Authority for Advance Ruling for Goods and Services Tax for hearing appeals against the advance ruling pronounced by the Advance Ruling Authority:

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

(2) The Appellate Authority shall consist of—

(i) the Chief Commissioner of central tax as designated by the Board; and

(ii) the Commissioner of Union territory tax having jurisdiction over the applicant.

Amendments History:

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Commentary on Section 16 of UTGST Act, 2017

Section 16 of the Union Territory Goods and Services Tax (UTGST) Act, 2017 provides for the constitution of an Appellate Authority for Advance Ruling (AAAR) in the context of Goods and Services Tax (GST) for Union Territories in India. The commentary on this section is as follows:

Section 16(1) of UTGST Act, 2017: Establishment of Appellate Authority for Advance Ruling (AAAR)

According to subsection (1), the Central Government is responsible for constituting the Appellate Authority, known as the (name of the Union territory) Appellate Authority for Advance Ruling for Goods and Services Tax. This authority is created to hear appeals against advance rulings given by the Advance Ruling Authority (ARA).

Alternative Appellate Authority: The proviso in subsection (1) allows the Central Government to assign an existing Appellate Authority located in any State or another Union territory to serve as the Appellate Authority for the purposes of the UTGST Act, 2017. This appointment is subject to the recommendations of the GST Council.

Section 16(2) of UTGST Act, 2017: Composition of the Appellate Authority

Subsection (2) specifies the members constituting the Appellate Authority. It consists of:

i) The Chief Commissioner of central tax, as designated by the Central Board of Indirect Taxes and Customs (CBIC); and

ii) The Commissioner of Union territory tax, who has jurisdiction over the applicant.

In summary, Section 16 of the UTGST Act, 2017 outlines the constitution and composition of the Appellate Authority for Advance Ruling (AAAR) for Union Territories in India. The Central Government is responsible for establishing this authority to hear appeals against advance rulings given by the Advance Ruling Authority (AAR), with the option to assign an existing Appellate Authority in another State or Union territory to serve the same purpose.

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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.