ADVANCE RULINGCentral

Section 15 of The Union Territory Goods and Services Tax Act, 2017

Constitution of Authority for 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--
1. (i)one member from amongst the officers of central tax; and
2. (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.

Summary

The Central Government is responsible for constituting an Authority for Advance Ruling for the Union territory by issuing a notification.
Instead of creating a new one, the Central Government can recommend an existing Authority from a State or another Union territory to act for the territory.
The Authority must consist of exactly two members appointed by the Central Government.
One member must be a central tax officer, and the other must be a Union territory tax officer.
The qualifications, appointment methods, and service conditions for these members will be established by prescribed rules.

Practical examples

1In January 2025, the Central Government decides that Dadra and Nagar Haveli and Daman and Diu needs an Authority for Advance Ruling. They issue a notification and appoint Ms. Sharma, a central tax officer, and Mr. Patel, a Union territory tax officer, to serve as the two members of this newly formed Authority.

2To save resources in a smaller territory, the Central Government follows the Council's recommendation and notifies that the existing Authority located in a neighboring State will also act as the Advance Ruling Authority for that specific Union territory.

FAQ

1. Who creates the Authority for Advance Ruling?

The Central Government constitutes it by notification.

2. How many members sit on the Authority?

There are two members, one from central tax and one from Union territory tax.

3. Who appoints the members of the Authority?

The Central Government appoints both members.

4. Does a Union territory have to build its own Authority from scratch?

No, the Central Government can notify an Authority located in a State or another Union territory to act for the territory.

Test yourself

Q1.Under Section 15 of The Union Territory Goods and Services Tax Act, 2017, who has the power to constitute the Authority for Advance Ruling?

Q2.Under Section 15 of The Union Territory Goods and Services Tax Act, 2017, what is the required makeup of the members of the Authority?

Q3.Under Section 15 of The Union Territory Goods and Services Tax Act, 2017, on whose recommendations can the Central Government notify an Authority located in a State to act for the Union territory?

Q4.Under Section 15 of The Union Territory Goods and Services Tax Act, 2017, who is responsible for appointing the members to the Authority?

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