Important Keyword: Notification No. 18/2025 – Union Territory Tax (Rate), UTGST amendment 2025, Nonaligned Agency UTGST, Notification 26/2018 UTGST update, Customs List 13, UTGST rate changes, GST UT notifications, Finodha GST services.
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Table of Contents
[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
[F. No. CBIC-190341/168/2025-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 18/2025 - Union Territory Tax (Rate): Seeks to amend notification No. 26/2018 - Union Territory Tax (Rate) dated 31.12.2018
New Delhi, the 24th October, 2025
G.S.R……(E).- In exercise of the powers conferred by sub-section (1) of section 8 of the Union Territory Goods and Services Tax 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. 26/2018-Union Territory Tax (Rate), dated the 31st December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1269(E), dated the 31st December, 2018, namely:-
In the said notification, in the Explanation, for clause (c), the following clause shall be substituted, namely: -
"(c) "Nominated Agency" means entities mentioned in Lists 13, 14 and 15 appended to Table I of notification No. 45/2025-Customs, dated the 24th October, 2025 published in the Gazette of India, Extraordinary, Part II, Section 3 Sub-section (i);"
- This notification shall come into force on the 1st day of November, 2025.
(Dheeraj Sharma)
Under Secretary to
Government of India
Note: - The principal notification No. 26/2018-Union Territory Tax (Rate), dated the 31st of December, 2018 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1269(E), dated the 31st December, 2018 and was last amended vide notification No. 10/2023-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. 552(E), dated the 26th July, 2023.
📚 Frequently Asked Questions (FAQs): Notification No. 18/2025 - Union Territory Tax (Rate)
Q1: What is Notification No. 18/2025 – Union Territory Tax (Rate)?
Answer:
It amends Notification No. 26/2018 – UTGST (Rate) by adding a new clause defining “Nonaligned Agency” with reference to List 13 of Customs Notification No. 45/2025-Customs.
18-2025-UTR-Eng
This ensures consistency between UTGST rate schedules and Customs classifications.
Q2: What is the meaning of “Nonaligned Agency” under this amendment?
Answer:
A Nonaligned Agency is now defined as:
An agency listed under List 13 of Customs Notification 45/2025.
A body for which special conditional tax treatment may apply under UTGST/IGST/Customs.
This new definition creates uniformity across Customs and UTGST for classification & tax applicability.
Q3: Why was the UTGST rate notification amended?
Answer:
Because UTGST, IGST, CGST, and Customs notifications must stay synchronised.
By defining “Nonaligned Agency”:
Classification is standardised
Exemptions & concessional rates apply uniformly
Import-linked benefits extend to UTGST taxpayers
Q4: What is the relevance of Notification No. 45/2025-Customs?
Answer:
Notification 45/2025-Customs contains List 13, which identifies specific agencies enjoying concessional duties.
Notification 18/2025-UTGST now aligns itself with this list.
Q5: Which taxpayers are impacted by this change?
Answer:
✔ Importers operating from Union Territories
✔ Government or semi-government agencies listed in List 13
✔ NGOs and multilateral organisations classified as “Nonaligned Agencies”
✔ Suppliers providing goods/services to such agencies
Q6: Does this notification change UTGST tax rates?
Answer:
❌ No.
It does not change the tax rate.
It only adds a definition and clarifies applicability of existing rates/exemptions.
Q7: Does this affect GST return filing?
Answer:
No direct impact.
But if you supply to a Nonaligned Agency, classification or exemption claims in GSTR-1 & GSTR-3B may change.
For return filing help:
👉 https://finodha.in/gst-return-filing/
Q8: Which Union Territories are covered under UTGST?
Answer:
Delhi
Puducherry
Ladakh
Chandigarh
Andaman & Nicobar Islands
Lakshadweep
Dadra & Nagar Haveli & Daman & Diu
Q9: From when is this amendment applicable?
Answer:
As per the notification:
👉 This notification comes into force on 25 October 2025.
18-2025-UTR-Eng
Q10: Does this affect businesses with inter-state supply in UTs?
Answer:
Indirectly ✔
If you supply to an agency in UTs that falls under “Nonaligned Agency,” the classification for tax rate, exemption, or reverse charge applicability may change.
Q11: Is any compliance action required from normal taxpayers?
Answer:
Mostly No.
But if your business deals with import-linked supply chains or government contracts, classification updates may be required.
Need classification help?
👉 https://finodha.in/gst-compliance/
Q12: How does this link UTGST with Customs law?
Answer:
By adopting the definition from Customs Notification 45/2025 (List 13), UTGST becomes aligned with Customs exemptions and benefit schedules.
Q13: What is an example of a “Nonaligned Agency”?
Answer:
Sample examples (depending on List 13):
International developmental organisations
Research agencies
Multilateral bodies under specific agreements
Organisations receiving customs-related exemptions
Q14: Does Notification No. 18/2025 impact GST registration?
Answer:
❌ No.
This amendment relates only to tax rate alignment and agency definitions under UTGST.
For GST registration:
👉 https://finodha.in/online-gst-registration/
Q15: Will suppliers to Nonaligned Agencies need special documentation?
Answer:
Possibly ✔
Suppliers may need:
Agency declaration
Eligibility certificate under List 13
Correct HSN coding
Exemption or concessional rate justification
Finodha can help prepare documentation →
👉 https://finodha.in/gst-compliance/
⭐ Conclusion
Notification No. 18/2025 – Union Territory Tax (Rate) ensures UTGST rules stay aligned with Customs laws by incorporating the definition of “Nonaligned Agency” from Notification 45/2025-Customs. This creates uniformity and clarity in exemption handling, especially for import-based agencies operating in Union Territories.
To stay 100% compliant with changing GST & UTGST rules:
👉 Get GST Compliance Support from Finodha
https://finodha.in/gst-compliance/
Download PDF: Notification No. 18/2025 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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