Section 15 of the UTGST Act - Constitution of Authority for Advance Ruling
Section 15 of the Union Territory Goods and Services Tax Act, 2017 establishes how an Authority for Advance Ruling (AAR) is constituted for a Union territory, how its members are appointed, and how another existing Authority may be designated to perform that function.
Section 15 - Statutory text
(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.
Meaning and scope of Section 15
Constitution by Central Government notification
Under sub-section (1), the Central Government constitutes an Authority for Advance Ruling for the relevant Union territory through a notification. The proviso allows the Central Government, acting on recommendations of the GST Council, to designate an Authority already situated in a State or another Union territory instead of constituting a separate Authority for each territory. The notification applicable to the territory must therefore be checked before identifying the competent AAR.
Composition of the Authority
Sub-section (2) provides for two members: one officer of central tax and one officer of Union territory tax. Both are appointed by the Central Government. The provision identifies the statutory composition; it does not itself specify which individual officers hold those appointments at a particular time.
Qualifications, appointment and service conditions
Under sub-section (3), members' qualifications, appointment method and terms and conditions of service are governed by prescribed rules. The applicable UTGST Rules, notifications and any subsequent changes must be consulted along with Section 15.
What does the Authority for Advance Ruling do?
An advance ruling is a decision on specified GST questions relating to supplies of goods or services or both undertaken or proposed by an applicant. Section 14 of the UTGST Act defines the relevant terms, including advance ruling, applicant, application and Authority. The permissible questions and application framework are addressed principally by Sections 97 and 98 of the CGST Act, 2017, as applied to UTGST through Section 21 of the UTGST Act.
Examples of questions potentially covered under Section 97(2) include classification, applicability of a notification, time and value of supply, admissibility of input tax credit, liability to pay tax, registration and whether an activity constitutes a supply. An advance ruling is not a general-purpose opinion on every GST dispute; statutory jurisdiction and admissibility conditions apply.
Authority and Appellate Authority are different
Section 15 concerns the original Authority for Advance Ruling. Section 16 concerns the Appellate Authority for Advance Ruling. Appeals and related procedural requirements are addressed by applicable provisions of the CGST Act, including Sections 100 to 101, read with the UTGST Act and rules.
Official legislation and updates
Read the UTGST Act, 2017 on India Code, consult the CBIC Tax Information Portal for applicable GST laws and notifications, the CBIC GST portal for rules and circulars, and the GST Council for relevant recommendations. Official notifications should be checked to establish the Authority designated for a particular Union territory.
Reviewed: 6 October 2026. Read the statutory text together with amendments, applicable rules and territorial notifications.