Notification No. 03/2020 - Union territory Tax (Rate) Explained

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Notification No. 03/2020 - Union territory Tax (Rate): Seeks to amend notification No. 1/2017-Integreated Tax (Rate) to prescribe change in IGST rate of goods.

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 (1) of section 7 of the UTGST Act, 2017 (14 of 2017) read with sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 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 number 187 and the entries relating thereto shall be omitted;

in Schedule II - 6%,-

after serial number 75 and the entries relating thereto, the following serial number and entries shall be inserted, namely :-

“75A.

3605 00 10

All goods”;

serial numbers 202 and 203 and the entries relating thereto shall be omitted; (c)in Schedule III - 9%,-

serial number 73 and the entries relating thereto shall be omitted;

in serial number 379, for the entry in column (3), the entry “All goods” shall be substituted;

2. This notification shall come into force on the 1^st day of April, 2020.

(Gaurav Singh)
Deputy 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. 01/2020- Union territory Tax(Rate), dated the 21^st February, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number GSR 136(E), dated the 21^st February, 2020.

📚 Frequently Asked Questions (FAQs): Notification No. 03/2020 – Union Territory Tax (Rate)

Q1: What is Notification No. 03/2020 – Union Territory Tax (Rate)?

Answer:
It amends Notification 1/2017-UTGST (Rate) and changes UTGST rates for multiple goods by altering entries in different schedules. notfctn-03-2020-utgst-rate-engl…

Q2: When is the notification applicable?

Answer:
From 01 April 2020. notfctn-03-2020-utgst-rate-engl…

Q3: What major rate change has occurred?

Answer:
Goods under HSN 3605 00 10 are added to Schedule II (6%) tax rate. notfctn-03-2020-utgst-rate-engl…

Q4: Which goods were removed from lower tax bracket?

Answer:
Serial No. 187 under Schedule I (2.5%) stands removed → those goods now taxed at a higher rate.

Q5: Does this affect goods in UTs only?

Answer:
Yes ✔ It applies only to Union Territories without Legislature such as Dadra & Nagar Haveli, Daman & Diu, Lakshadweep, etc.

Q6: Why was this rate amendment required?

Answer:
GST Council aimed to standardize classification and align rates with similar goods in CGST/IGST laws.

Q7: How does this change affect pricing?

Answer:
Rates may increase/decrease depending on whether goods were omitted from lower or higher schedules.
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Q8: Do UT-based businesses need to update ERP billing?

Answer:
YES ✔ Ensure new tax rates reflect in invoices issued after 1 April 2020.

Q9: Will GSTR-1 & 3B filing require adjustment?

Answer:
Yes — revised rate mapping must be followed.
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Q10: Is ITC allowed on goods affected here?

Answer:
Yes, input tax credit continues as per standard rules unless goods are exempted elsewhere.

Q11: Are fireworks industry businesses impacted?

Answer:
Yes — lower 6% UTGST rate supports pyrotechnic manufacturing competitiveness.

Q12: What about omitted Serial Nos. 202 & 203 in Schedule II?

Answer:
Those goods now shift to new rate categories, so suppliers must verify applicable UTGST rates.

Q13: What does “All goods” substitution mean?

Answer:
Serial No. 379 now covers all goods under that classification → removes confusion in product mapping. notfctn-03-2020-utgst-rate-engl…