Union Territory Goods and Services Tax Act, 2017 | Chapter II - Administration

Section 3 of UTGST Act, 2017 - Officers under this Act

Section 3 empowers the Administrator to appoint Commissioners and other classes of Union territory tax officers by notification, specify their functions as proper officers, and recognise officers appointed under the existing law.

Text of Section 3 - Officers under this Act

Meaning and scope of Section 3

The provision establishes the statutory basis for appointing officials who administer the Union Territory Goods and Services Tax (UTGST). Appointment is made by the Administrator through a notification. The notification may identify Commissioners, other classes of officers, and the purposes for which they are treated as proper officers. Section 3 does not itself assign every GST function to every appointed officer; the specified notification and applicable statutory powers must be considered.

Administrator and Commissioner

Under Section 2(6), "Government" means the Administrator or an authority or officer authorised by the Central Government to act as Administrator. Under Section 2(2), "Commissioner" means the Commissioner of Union territory tax appointed under Section 3. The power of appointment in Section 3 is expressly vested in the Administrator.

Proper officer and notification

A "proper officer" is the officer competent to perform the particular statutory function assigned to that officer. Under Section 3, officers appointed by the Administrator are deemed proper officers for the purposes specified in the notification. A taxpayer assessing the validity of an official action should therefore consider the relevant appointment notification, allocation of functions, and applicable provisions of the Act.

Continuity of existing officers

The proviso prevents a gap in administration when the UTGST framework comes into operation. Officers appointed under the "existing law" are deemed appointed under the UTGST Act. Section 2(5) defines "existing law" by reference to laws, notifications, orders, rules and regulations concerning the levy and collection of duties or taxes on goods or services made before commencement of the Act.

Related administrative provisions

Section 4 - Authorisation of officers permits the Administrator, by order, to authorise an officer to appoint Union territory tax officers below the rank of Assistant Commissioner. Section 5 - Powers of officers governs the exercise and delegation of powers, subject to applicable conditions and limitations. Section 6 concerns the authorisation of central tax officers as proper officers in specified circumstances and safeguards against overlapping proceedings.

These provisions operate alongside Section 3. Appointment, authorisation and the lawful exercise of a particular power are related but distinct legal questions.

Commencement and applicability

Section 3 was brought into force on 22 June 2017, under Notification No. 1/2017-Union Territory Tax dated 21 June 2017. The territorial scope of the Act must be read with the amended Sections 1 and 2, including changes concerning Dadra and Nagar Haveli and Daman and Diu, and Ladakh. For any particular case, the current notification, territorial jurisdiction and relevant amendments should be checked.

Official legislation and notifications

• India Code - Union Territory Goods and Services Tax Act, 2017 (Act 14 of 2017)
• CBIC - Union Territory Tax notifications
• CBIC - UTGST Act text

This article explains the statutory framework. Specific officers' jurisdiction and powers depend on the applicable notifications, orders and current law.