Notification No. 04/2017 – UTTR Explained

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Notification No. 04/2017 - Union Territory Tax (Rate): Notification prescribing reverse charge on certain specified supplies of goods under section 7 (3)

GST: [TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

G.S.R. (E).- In exercise of the powers conferred by sub-section (3) of section 7 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on the recommendations of the Council,

hereby specifies the supply of goods, the description of which is specified in column (3) of the Table below and falling under the tariff item, sub- heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Table, made by the person as specified in the corresponding entry in column (4), in respect of which the Union territory tax shall be paid on reverse charge basis by the recipient of the intra-state supply of such goods as specified in the corresponding entry in column (5) and all the provisions of the said Act shall apply to such recipient, namely:-

TABLE

S. No.	Tariff item, sub-heading, heading or Chapter	Description of supply of Goods	Supplier of goods	Recipient of supply
(1)	(2)	(3)	(4)	(5)
1.	0801	Cashew nuts, not shelled or peeled	Agriculturist	Any registered person
2.	1404 90 10	Bidi wrapper leaves (tendu)	Agriculturist	Any registered person
3.	2401	Tobacco leaves	Agriculturist	Any registered person
4.	5004 to 5006	Silk yarn	Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarn	Any registered person
5.	-	Supply of lottery.	State Government, Union Territory or any local authority	Lottery distributor or selling agent. Explanation.- For the purposes of this entry, lottery distributor or selling agent has the same meaning as assigned to it in clause (c) of Rule 2 of the Lotteries (Regulation) Rules, 2010, made under the provisions of sub section 1 of section 11 of the Lotteries (Regulations) Act, 1998 (17 of 1998).

Explanation.–

In this Table, “tariff item”, “sub-heading”, “heading” and “Chapter” shall mean respectively a tariff item, sub-heading, heading or chapter, as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.

2. This notification shall come into force with effect from the 1^st day of July, 2017.

(Mohit Tewari)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 04/2017 - Union Territory Tax (Rate)

Q1. What is Notification No. 04/2017-UTT (Rate)?

Answer: It specifies certain goods on which GST must be paid under reverse charge by the recipient rather than the supplier.

Q2. Which goods are covered?

Answer: Cashew nuts, tendu leaves, tobacco leaves, silk yarn, and lottery supplies are covered.

Q3. What is reverse charge mechanism?

Answer: Reverse charge shifts GST liability from the supplier to the recipient of goods or services.

Q4. Does reverse charge apply to all goods?

Answer: No.
It applies only to goods specifically notified under GST law.

Q5. Are agriculturists covered under this notification?

Answer: Yes.
Agriculturists supplying cashew nuts, tendu leaves, and tobacco leaves are specifically covered.

Q6. Who pays GST on tobacco leaves?

Answer: The registered recipient purchasing tobacco leaves from an agriculturist pays GST under reverse charge.

Q7. Does silk yarn attract reverse charge?

Answer: Yes.
Specified supplies of silk yarn are covered under reverse charge.

Q8. Are lottery supplies covered?

Answer: Yes.
Lottery supplies by State Governments, Union Territories, or local authorities to distributors or selling agents are covered.

Q9. Can ITC be claimed on RCM tax paid?

Answer: Generally yes, subject to fulfillment of GST conditions and eligibility requirements.

Q10. What is Section 7(3) of the UTGST Act?

Answer: It authorizes the Government to notify supplies on which tax must be paid under reverse charge.

Q11. Is supplier registration relevant?

Answer: It may be relevant in some situations, but the notification primarily focuses on the specified supply category and parties involved.

Q12. Is the notification still important?

Answer: Yes.
It remains one of the foundational reverse charge notifications under GST.

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