Important Keyword: Notification No. 03/2024-Union Territory Tax (Rate), UTGST Rate amendment, pre-packaged farm produce, UTGST July 2024 update, GST Council recommendations,
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Table of Contents
[F. No. 190354/94/2024-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 12th July, 2024
Notification No. 03/2024 – Union Territory Tax (Rate): Seeks to amend notification No. 2/2017 – Union Territory Tax (Rate)
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 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 2/2017-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.711(E), dated the 28th June, 2017, namely:-
In the said notification, after the Schedule, in the Explanation, in clause (ii), after the entries relating thereto, the following proviso shall be inserted, namely:-
“Provided that notwithstanding anything contained in the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder, as amended from time to time, the supply of agricultural farm produce in package(s) of commodities containing quantity of more than 25 kilogram or 25 litre shall not be considered as a supply made within the scope of expression ‘pre-packaged and labelled’.”.
- This notification shall come into force on the 15th day of July, 2024.
(Nitish Karnatak)
Under Secretary
Note: -The principal notification No. 2/2017-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. 711(E), dated the 28th June, 2017, and was last amended vide notification No. 18/2023-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. 779(E), dated the 19th October, 2023.
📚 Frequently Asked Questions (FAQs): Notification No. 03/2024 – Union Territory Tax (Rate)
Q1: 🔍 What is Notification No. 03/2024 – Union Territory Tax (Rate)?
Answer:
It’s an amendment issued by the Government of India on 12th July 2024, modifying the earlier Notification No. 2/2017-Union Territory Tax (Rate). It introduces a specific exemption for agricultural products in certain packaging formats from GST.
Q2: 📦 What exemption does the notification introduce for agricultural commodities?
Answer:
The notification states that farm produce sold in packages containing more than 25 kilograms or 25 litres will not be classified as “pre-packaged and labelled,” and hence, not taxed under UTGST.
Q3: 🏛️ Why was this clarification necessary?
Answer:
This move clarifies disputes regarding GST on bulk farm produce and aligns with industry feedback that large packages for wholesale/agri-trade should not be taxed as retail items.
Q4: 📅 From when is Notification No. 03/2024 effective?
Answer:
The changes take effect from 15th July 2024, as mentioned in the gazetted notification.
Q5: 📜 Which earlier notification is being amended by this?
Answer:
It amends Notification No. 2/2017 – Union Territory Tax (Rate), dated 28th June 2017.
Q6: 🌾 What does “pre-packaged and labelled” mean under GST?
Answer:
As per GST law, goods in a pre-packed form with labels or required declarations are considered “pre-packaged and labelled” and attract GST unless specifically exempted.
Q7: 📈 What is the impact on businesses selling agri-commodities in bulk?
Answer:
This provides relief to agri-traders, cooperatives, and mandis that supply commodities in bulk (>25kg/25L), helping reduce the tax burden and compliance.
Q8: ⚖️ How does this align with the Legal Metrology Act?
Answer:
The amendment specifically overrides the Legal Metrology Act to exempt large agri packages from the scope of “pre-packaged and labelled.”
Q9: 🧾 Is GST applicable on packages exactly 25kg or 25L?
Answer:
Yes, packages of exactly 25kg or 25L are considered within the scope of pre-packaged and labelled goods and will attract GST unless otherwise exempted.
Q10: ✅ Where can businesses get assistance for GST compliance?
Answer:
For GST compliance, registration, or advisory, you can consult the experts at Finodha: https://finodha.in/gst-compliance/
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🧠 Summary:
This notification ensures that large quantity agricultural supplies aren’t wrongly taxed under GST as pre-packaged retail items. It’s a clarifying relief to bulk suppliers and agri-traders across union territories.
Download PDF: Notification No. 03/2024 – UTGST
More Information: https://taxinformation.cbic.gov.in/
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