Notification No. 01/2022 – UT Tax (Rate) GST Amendments

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 01/2022 - Union Territory Tax (Rate): Seeks to amend notification No. 1/2017-Union Territory Tax (Rate)

[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 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.1/2017-Union Territory Tax (Rate), dated the 28^th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 710(E)., dated the 28^th June, 2017, namely:-

In the said notification, -

in Schedule I – 2.5%, serial numbers 225B,226, 227, 228 and the entries relating thereto shall be omitted;

in Schedule II – 6%, after serial number 176A and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: -

“176B	6815	Fly ash bricks or fly ash aggregate with 90 per cent. or more fly ash content; Fly ash blocks
176C	6901 00 10	Bricks of fossil meals or similar siliceous earths
176D	6904 10 00	Building bricks
176E	6905 10 00	Earthen or roofing tiles”.

2. This notification shall come into force on the 1^st day of April, 2022.

(Vikram Vijay Wanere)
Under Secretary to the Government of India

Note: - The principal notification No.1/2017-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. 710(E), dated the 28^th June, 2017, and was last amended by notification No. 21/2021 – Union Territory Tax (Rate), dated the 31^st December, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 922(E), dated the 31^st December, 2021.

📚 Frequently Asked Questions (FAQs): Notification No. 01/2022 - Union Territory Tax (Rate)

Q1: What is Notification No. 01/2022 – Union Territory Tax (Rate)?

Answer:
This notification amends Notification No. 1/2017 – Union Territory Tax (Rate). It updates UTGST rates and related provisions in line with GST Council recommendations

Q2: Why was this amendment issued?

Answer:
The amendment was required to streamline GST applicability in Union Territories, ensuring consistency across India and aligning with other GST (Central, State, and Integrated) changes.

Q3: Which supplies are affected by Notification No. 01/2022 – UT Tax (Rate)?

Answer:
It primarily impacts intra-state taxable supplies in Union Territories, where Union Territory GST applies instead of State GST. Specific goods and services listed in the amendment are subject to revised rates.

Q4: From when is this notification effective?

Answer:
The provisions of Notification No. 01/2022 – Union Territory Tax (Rate) came into force from 1st January 2022 unless specifically mentioned otherwise.

Q5: How does this relate to earlier Notification No. 1/2017 – UT Tax (Rate)?

Answer:
Notification No. 1/2017 was the foundational UTGST rate notification. The 2022 update modifies certain schedules, rate entries, and exemptions to keep them in sync with evolving GST policy.

Q6: Does this amendment impact ITC (Input Tax Credit) eligibility?

Answer:
Yes. Businesses must check whether the amended entries affect their ITC claims. For example, concessional rates without ITC or exemptions may require adjusting tax treatment in returns.

Q7: What are the compliance requirements for businesses in Union Territories?

Answer:
Correct classification of goods/services under the new UT Tax (Rate).
Filing of updated GST Returns reflecting the revised rates.
Ensuring GST Registration is valid if operations are based in a Union Territory.
Timely adoption of rate changes in invoices and ERP systems.

Q8: How does this affect small businesses in Union Territories?

Answer:
Small businesses and startups in Union Territories benefit from clarity on revised GST rates. With professional help from platforms like Finodha GST Experts, they can maintain compliance while focusing on growth.

Q9: Where can I get professional help for Union Territory GST compliance?

Answer:
Finodha offers services including Income Tax Return filing, GST Compliance, Private Limited Company Registration, Digital Signature Certificate, and MSME Registration.

Q10: Why is this notification important for GST uniformity?

Answer:
Without such amendments, GST law in Union Territories could differ from States, causing compliance issues. This notification ensures that GST remains a unified national tax.