Notification No. 02/2023 - UTT (R) Courts & Tribunals

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Notification No. 02/2023 - Union Territory Tax (Rate): Seeks to amend notification No. 13/2017- Union Territory Tax (Rate) so as to notify change in GST with regards to services as recommended by GST Council in its 49th meeting held on 18.02.2023.

[TO BE PUBLISHED IN THE GAZETTE OFINDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GSR (E).-In exercise of the powers conferred by sub-section (3) of section 7 of the UTGST Act, 2017 (14 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.13/2017-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. 704(E), dated the 28th June, 2017, namely:-

In the said notification, in the Explanation, in clause (h), for the words “and State Legislatures” the words “, State Legislatures, Courts and Tribunals” shall be substituted.

2. This notification shall come into force with effect from the 01^st March, 2023.

(Rajeev Ranjan)
Under Secretary

Note: - The principal notification no. 13/2017 - Union Territory Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 692 (E), dated the 28^th June, 2017 and was last amended vide notification no. 05/2022 -Union Territory Tax (Rate), dated the 13^th July, 2022 published in the official gazette vide number G.S.R. 549(E), dated the 13^th July, 2022.

📚 Frequently Asked Questions (FAQs): Notification No. 02/2023 - Union Territory Tax (Rate)

✅ Q1: What is Notification No. 02/2023 - Union Territory Tax (Rate)?

Answer:
Notification No. 02/2023 - Union Territory Tax (Rate), dated 28th February 2023, amends Notification No. 13/2017 by expanding the scope of GST exemptions under certain service categories. Specifically, it updates clause (h) of the Explanation to include “State Legislatures, Courts and Tribunals.”
📅 This amendment is effective from 1st March 2023.
🔗 Need help understanding GST applicability to services? Ask Finodha GST Experts.

✅ Q2: What change has been introduced in clause (h) of the Explanation?

Answer:
Clause (h) of Notification No. 13/2017 has been revised to substitute:
Old text:
“and State Legislatures”
New text:
“, State Legislatures, Courts and Tribunals”
This widens the scope of entities whose services are covered under GST exemptions or specific provisions.
⚖️ Unsure how this affects your legal or consultancy services? Reach out to Finodha GST Compliance.

✅ Q3: Who benefits from this amendment?

Answer:
This amendment clarifies and extends GST provisions relating to services provided to or by:
State Legislatures
Courts
Tribunals
This ensures uniform treatment across similar institutions and avoids ambiguity in GST law interpretation.
📘 For updated classification of services, connect with Finodha GST Professionals.

✅ Q4: What was the context behind this change?

Answer:
The 49th GST Council Meeting (held on 18th February 2023) recommended aligning GST treatment of services related to judicial, quasi-judicial, and legislative bodies. This update removes interpretational disputes regarding service taxability on or by courts and tribunals.
🧾 For insights on other GST Council recommendations, follow Finodha GST Blog.

✅ Q5: From which date is Notification No. 02/2023 applicable?

Answer:
It applies with effect from 1st March 2023, and GST returns or invoices from this date should reflect the amended provisions accordingly.
📅 Don’t miss compliance deadlines. Explore GST Return Filing Services.

✅ Q6: What is the significance of including “Courts and Tribunals” under clause (h)?

Answer:
Including “Courts and Tribunals” ensures their services are treated on par with State Legislatures in terms of GST. This:
Reinforces their exempt or non-taxable status
Brings clarity to legal service providers and consultants
⚖️ Legal service provider? Review your GST position with Finodha Professionals.

✅ Q7: How does this impact service providers to these bodies?

Answer:
Depending on the nature of the service and entity (Court, Legislature, or Tribunal), the GST may not apply, or reverse charge provisions may apply. This update helps service providers accurately classify invoices and avoid disputes.
🧮 Get classification & invoicing support from Finodha GST Advisory.

✅ Q8: Does this apply to all Union Territories?

Answer:
✅ Yes. As this is a Union Territory Tax (Rate) notification, it applies to all Union Territories without a legislature, such as:
Lakshadweep
Daman & Diu
Chandigarh
Andaman & Nicobar Islands
📍 For UT-specific GST registration, visit Finodha GST Registration.

✅ Q9: What is Notification No. 13/2017 and why is it important?

Answer:
Notification No. 13/2017 specifies services under reverse charge mechanism (RCM). Amending its explanation ensures the correct interpretation of entities and exemptions like those concerning State institutions.
📜 Need help with RCM-related invoices or GST return structure? Visit Finodha GST Return Filing.

✅ Q10: Is this change linked with other 2023 GST updates?

Answer:
Yes. This amendment aligns with a series of 2023 notifications enhancing clarity in GST laws, including:
Changes in GTA service options
Rate changes on packaged jaggery
Exemptions on satellite services
Procedural updates via Annexure forms
🧩 Stay fully compliant with Finodha Compliance Services.