Important Keyword: Notification No. 13/2023 - Union Territory Tax (Rate), GST Exemptions 2023, UTGST updates, Notification 12/2017 UTGST, GST Council decisions, UTGST Notification 13/2023, GST exemption services, GST on government bodies, GST Council 2023 update, UTGST amendment,
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Table of Contents
[F. No. CBIC-190354/195/2023-TO (TRU-II)-CBEC]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 19th October, 2023
Notification No. 13/2023 - Union Territory Tax (Rate): Seeks to amend Notification No 12/2017- Union territory Tax (Rate) dated 28.06.2017.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]
G.S.R......(E).-In exercise of the powers conferred by sub-sections (3) and (4) of section 7, sub- section (1) of section 8 and clause (iv) 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 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017),
the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendment further to amend the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.12/2017-Union Territory Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 703 (E), dated the 28th June, 2017, namely: -
In the said notification, in the Table, -
(1.) after serial number 3A and the entries relating thereto, the following serial number and entries shall be inserted, namely: -
| (1) | (2) | (3) | (4) | (5) |
| “3B | Chapter 99 | Services provided to a Governmental Authority by way of - water supply; public health; sanitation conservancy; solid waste management; and slum improvement and upgradation. | Nil | Nil”; |
(2.) against serial number 6, in column (3),in item (a), after the words “Department of Posts”, the words and brackets “and the Ministry of Railways (Indian Railways)” shall be inserted;
(3.) against serial number 7, in column (3), in the Explanation, in item (a), in sub-item(i), after the words “Department of Posts”, the words and brackets “and the Ministry of Railways (Indian Railways)”shall be inserted;
(4.) against serial number 8, in column (3)in the proviso, in item (i), after the words “Department of Posts”, the words and brackets “and the Ministry of Railways (Indian Railways)” shall be inserted;
(5.) against serial number 9,in column (3), in the first proviso, in item (i), after the words “Department of Posts”, the words and brackets“and the Ministry of Railways (Indian Railways)” shall be inserted;
2. This notification shall come into force with effect from the 20th day of October, 2023.
(Rajeev Ranjan)
Under Secretary to the Government of India
Note: The principal notification no. 12/2017 - Union Territory 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. 703 (E), dated the 28th June, 2017 and was last amended vide notification no. 07/2023 – Union Territory 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. 542(E), dated the 26th July, 2023.
📚 Frequently Asked Questions (FAQs): Notification No. 13/2023 - Union Territory Tax (Rate)
❓ Q1: What is Notification No. 13/2023 - Union Territory Tax (Rate)?
Answer: This notification amends Notification No. 12/2017 - UTGST (Rate), dated 28.06.2017. It modifies GST exemption rules related to services provided by central and state governments, local authorities, and certain government bodies.
❓ Q2: What is the primary change introduced by Notification 13/2023?
Answer: The key change includes a clarification and modification in the exemption entries that previously applied to services offered by courts, tribunals, government authorities, and local bodies. This ensures consistent treatment of such services under the Union Territory GST framework.
❓ Q3: When did this notification come into effect?
Answer: The changes under Notification No. 13/2023 - Union Territory Tax (Rate) became effective from 26th July 2023.
❓ Q4: How does it impact services provided by government bodies?
Answer: Services like:
Issuance of passports, driving licenses, birth certificates
Services related to functions entrusted to municipalities/panchayats
continue to be exempt, but specific clarifications ensure that paid services under commercial contracts may now attract GST.
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❓ Q5: Which services still remain exempt under the updated UTGST notification?
Answer: As per the revised list:
Services by courts or tribunals
Services by the Government relating to diplomatic/consular operations
Services by local authorities in their sovereign functions
are exempt from GST.
❓ Q6: Is this amendment in line with the GST Council’s recommendations?
Answer: Yes ✅, this update aligns with the recommendations made by the GST Council in its 50th meeting to refine GST applicability on sovereign functions and prevent revenue leakage from commercial-like transactions conducted by government bodies.
❓ Q7: Where can I get help with compliance under the amended UTGST rules?
Answer: Finodha offers full compliance services. Whether you're a startup, NGO, or a government contractor, explore:
GST Registration
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❓ Q8: How can this impact small businesses or NGOs working with local authorities?
Answer: Small businesses and NGOs working under service contracts with government departments might now fall under taxable service categories depending on the nature of the agreement. You may need to register under GST and start filing returns.
🧾 Summary
Notification No. 13/2023 - Union Territory Tax (Rate) ensures clarity on exempted and non-exempted services under UTGST. It particularly impacts government departments, local bodies, and businesses or entities contracting with them.
📅 Effective Date: 26 July 2023
📚 Amends: Notification No. 12/2017 – Union Territory Tax (Rate)
✅ Conclusion
This notification offers clarity on GST exemptions for services provided by governmental institutions. It’s crucial for service providers to reassess their GST obligations in light of these updates. For expert assistance in GST compliance, registration, and returns, visit Finodha.in.
📩 For help with ITR filing, visit: File ITR Online
🧠 Need help understanding your GST exemptions? Talk to Finodha’s GST Experts
Download PDF: Notification No. 13/2023 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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