Notification No. 01/2019 - Union Territory Tax (Rate) Update

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Notification No. 01/2019 – Union Territory Tax (Rate): Seeks to rescind notification No. 8/2017-Union Territory Tax (Rate) dated 28.06.2017 in view of bringing into effect the amendments (regarding RCM on supplies by unregistered persons) in the GST Acts

[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 (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 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 rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 8/2017- Union Territory Tax (Rate), dated the 28^th June, 2017, published in the Gazette of India, Extraordinary, vide number G.S.R.717 (E), dated the 28^th June, 2017, except as respects things done or omitted to be done before such rescission.

2. This notification shall come into force with effect from the 1^st day of February, 2019.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

Note: - The principal notification No. 8/2017- Union Territory Tax (Rate), dated the 28^th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i), vide number G.S.R.717 (E), dated the 28^th June, 2017 and was last amended vide notification No. 22/2018- Union Territory Tax (Rate), dated the 6^th August, 2018, published vide number G.S.R. 745 (E), dated the 6^th August, 2018.

📚 Frequently Asked Questions (FAQs): Notification No. 01/2019 - Union Territory Tax (Rate)

Q1: What is Notification No. 01/2019 - Union Territory Tax (Rate)?

Answer:
It withdraws the earlier rule requiring RCM on purchases from unregistered suppliers.

Q2: From when is this notification effective?

Answer:
From 1 February 2019.

Q3: What notification was rescinded?

Answer:
Notification No. 8/2017 – UTGST (Rate).

Q4: What was the rule under Notification 8/2017?

Answer:
Registered persons had to pay GST under RCM on purchases from unregistered suppliers.

Q5: Does RCM still apply after this notification?

Answer:
Yes, but only for specific notified categories.

Q6: What are examples of notified RCM categories?

Answer:
Goods Transport Agency (GTA)
Legal services
Security services
Director services

Q7: Do I need to pay GST when buying from a local unregistered vendor?

Answer:
No, unless the supply falls under a notified RCM category.

Q8: Does this reduce compliance burden?

Answer:
Yes 👍
Businesses no longer need to track every small purchase from unregistered suppliers.

Q9: Do I still need GST registration?

Answer:
Yes, if your turnover exceeds the threshold.
👉 https://finodha.in/online-gst-registration/

Q10: Do I still need to file GST returns?

Answer:
Yes, GST return filing is mandatory.
👉 https://finodha.in/gst-return-filing/

Q11: Does this affect input tax credit?

Answer:
Yes. Since RCM is not applicable, no ITC arises from such transactions.

Q12: What if I paid RCM earlier?

Answer:
Transactions before 1 Feb 2019 remain valid.

Q13: Does this apply to both goods and services?

Answer:
Yes, for supplies from unregistered persons, unless specifically notified.

Q14: What documents should businesses maintain?

Answer:
Purchase invoices
Supplier details
GST returns
RCM records for notified services

Q15: How can Finodha help with GST compliance?

Answer:
Finodha offers:
✔ GST registration
✔ GST compliance services
✔ Return filing
✔ Business setup assistance
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