Important Keyword: Notification No. 09/2024 – Union Territory Tax (Rate), Reverse Charge GST Rent, Renting of Property GST, Notification 13/2017 GST, UTGST, Finodha GST Expert,
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Table of Contents
[F. No. 190354/149/2024-TO(TRU-II) – Part-I CBEC]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, the 8th October, 2024
Notification No. 09/2024 – Union Territory Tax (Rate): Seeks to amend Notification No.13/2017-Union Territory Tax (Rate) dated 28.06.2017
GST [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-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 Table, after serial number 5AA and the entries relating thereto, the following serial number and entries relating thereto in columns (2), (3) and (4) shall be inserted, namely: –
| (1) | (2) | (3) | (4) |
| “5AB | Service by way of renting of any property other than residential dwelling. | Any unregistered person | Any registered person.” |
- This notification shall come into force with effect from the 10th day of October, 2024.
(Dilmil Singh Soach)
Under Secretary to the
Government of India
Note: -The principal notification no. 13/2017 -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. 704 (E), dated the 28th June 2017 and was last amended vide notification no. 14/2023 -Union Territory Tax (Rate), dated the 19th October 2023 published in the Gazette of India, Extraordinary, Part II , Section 3 , Sub-section (i) vide number G.S.R. 767(E), dated the 19th October 2023.
Frequently Asked Questions (FAQs): Notification No. 09/2024 – Union Territory Tax (Rate)
Q1: What is the purpose of Notification No. 09/2024 – Union Territory Tax (Rate)?
Answer:
This notification inserts entry 5AB in the reverse charge list of Notification No. 13/2017, making registered persons liable to pay GST on renting of any property (except residential dwellings) received from unregistered suppliers in Union Territories.
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Q2: What type of services does entry 5AB cover?
Answer:
Entry 5AB applies to “Service by way of renting of any property other than residential dwelling.” It includes commercial property leases or rentals.
🏢 Example: Renting a shop, office space, or warehouse by a registered person from an unregistered landlord.
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Q3: Who is liable to pay GST under this notification?
Answer:
The registered person receiving the service is liable to pay GST under reverse charge mechanism (RCM) if the supplier (landlord) is unregistered.
📌 Need RCM assistance? Visit: https://finodha.in/gst-compliance/
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Q4: Does this rule apply to residential property rentals?
Answer:
No❌. Residential dwelling rentals are excluded. Entry 5AB only applies to non-residential (commercial/industrial) property rentals.
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Q5: When does this reverse charge provision come into force?
Answer:
This provision takes effect from 10th October 2024, as stated in the notification.
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Q6: How does this affect registered businesses operating in Union Territories?
Answer:
Registered businesses leasing commercial premises from unregistered landlords must now:
✔️ Pay GST on reverse charge
✔️ Report in GSTR-3B
✔️ Claim ITC, if eligible
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Q7: Which principal notification has been amended by this?
Answer:
Notification No. 13/2017–Union Territory Tax (Rate), originally issued on 28 June 2017, is amended by this Notification No. 09/2024.
📜 Reference: G.S.R. 704(E), dated 28.06.2017
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Q8: Is this reverse charge applicable pan-India?
Answer:
No. This notification specifically applies to Union Territories like Andaman & Nicobar Islands, Chandigarh, Daman & Diu, Dadra & Nagar Haveli, Lakshadweep, and Ladakh under the UTGST Act.
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Q9: Can the recipient of rent claim Input Tax Credit (ITC)?
Answer:
Yes✅, the registered recipient can claim ITC of the tax paid under reverse charge subject to conditions under Section 16 of CGST Act.
📚 Learn more: https://finodha.in/online-gst-registration/
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Q10: How can Finodha help with compliance under this update?
Answer:
Finodha offers:
📌 RCM evaluation & reporting
📌 GSTR-3B filing & advisory
📌 ITC eligibility review
📌 Expert guidance for Union Territory GST laws
🔗 Get support here: https://finodha.in/gst-return-filing/
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✅ Summary:
Notification No. 09/2024 – UT Tax (Rate) strengthens the reverse charge mechanism by taxing commercial property rentals where the supplier is unregistered. Registered businesses in UTs must update their tax compliance to reflect this change from 10th October 2024.
💡 Related Finodha Services:
• GST Registration: https://finodha.in/online-gst-registration/
• ITR Filing: https://finodha.in/income-tax-return-filing-online/
• GST Compliance & Audit: https://finodha.in/gst-compliance/
• Private Ltd Compliance: https://finodha.in/roc-compliance-for-private-limited-company/
• Digital Signature (DSC): https://finodha.in/online-dsc-digital-signature-certificate/
Download PDF: Notification No. 09/2024 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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