[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUBSECTION (i)]

Government of India

Ministry of Finance

(Department of Revenue)

 

Notification No. 12/2023- Union Territory Tax (Rate)

 

New Delhi, the 19th October, 2023

 

G.S.R......(E).-In  exercise  of  the  powers  conferred  by sub-sections  (1),  (3)   and  (4)  of section 7, sub-section (1) of section 8, clause  (iv), clause  (v) and clause  (xxvii)  of section 21 of the  Union  Territory  Goods  and    Services    Tax    Act,    2017  (14    of    2017),    read    with    sub-section    (5)    of    section    15,    sub-section   (1)    of  section  16  and  section  148  of  the  Central  Goods  and  Services Tax  Act,  2017  (12  of  2017),  the  Central  Government,   on  the   recommendations   of   the    Council, and  on  being   satisfied  that it   is   necessary  in   the  public  interest  so  to  do,  hereby  makes  the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.11/2017-Union Territory Tax (Rate), dated the 28th June, 2017,  published  in  the  Gazette  of  India,  Extraordinary,  Part  II,  Section  3,  Subsection  (i), vide number G.S.R. 702(E), dated the 28th June, 2017, namely:-

 

  In the said notification, -

 

  1. in the Table,

 

(i) against serial number 8, in column (3), in item (vi), after the condition in column (5) against the rate of 2.5 percent, the following condition shall be inserted, namely:-

“Provided further that where the supplier of input service in the same line of business charges Union Territory tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken. Illustration:  ‘A’ engages ‘B’ for transport from New Delhi to Jaipur in a motor cab for Rs. 1000. ‘B’, for supplying the said service, hires a motor cab with operator from ‘C’ for Rs. 800. ‘C’ charges ‘B’ Union Territory tax at the rate of 6% (Rs. 48). If ‘B’ charges ‘A’ Union Territory tax at the rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 48.”;

 

(ii) against serial number 10, in column (3), in item (i), after the condition in column (5) against the rate of 2.5 percent, , the following condition shall be inserted, namely:-

“Provided further that where the supplier of input service in the same line of business charges Union Territory tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken.

 

Illustration:  ‘A’ engages ‘B’ for transport from New Delhi to Jaipur in a motor cab for Rs. 1000. ‘B’, for supplying the said service, hires a motor cab with operator from ‘C’ for Rs. 800. ‘C’ charges ‘B’ Union Territory tax at the rate of 6% (Rs. 48). If ‘B’ charges ‘A’ Union Territory tax at the rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 48.”;

 

(iii) against serial number 34, -

c. in column (3), in item (iv), for the words “totalisator or a license to” , the words “licensing a” shall be substituted;

 

b. in column (3), item (v) and the entries relating thereto shall be omitted;

  1. in the Annexure: Scheme of Classification of Services,-
    1. serial number 696  and the entries relating thereto shall be omitted; (ii) serial number 698 and the entries relating thereto shall be omitted.

2.  This notification shall come into force with effect from the 20th day of October, 2023.

 

 

[F.No. CBIC-190354/195/2023-TO (TRU-II)-CBEC]

 

 

(Rajeev Ranjan)

 

 Under Secretary to the Government of India

 

Note: -The principal notification number 11/2017 -Union Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary,  Part II, Section 3, Sub-section (i) ,vide number G.S.R. 702 (E), dated the 28th June, 2017 and was last amended vide notification number 06/2023-Union Tax (Rate), dated the 26th July, 2023 published in the Gazette of India, Extraordinary, Part II , Section 3 , Sub-section (i) vide number G.S.R. 539(E), dated the 26th July, 2023.