Important Keyword: UTGST exemption, export transportation GST, Notification 04/2020 UTGST Rate, GST air cargo exemption, GST sea freight exemption, logistics GST benefit 2021,
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[F. No.354/123/2020-TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 30th September, 2020
Notification No. 04/2020 - Union Territory Tax (Rate): Extension of UTGST exemption on services by way of transportation of goods by air or by sea from customs station of clearance in India to a place outside India, by one year i.e. up to 30.09.2021.
GST: [TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R. (E). In exercise of the powers conferred by sub-section (3) and (4) of section 7, sub-section (1) of section 8 and clause (iv) and clause (xxvii) of section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) read with sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 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 makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.12/2017- 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. 703(E), dated the 28th June, 2017, namely:
In the said notification, in the Table, - -
(i) against serial number 19A, in the entry in column (5), for the figures "2020", the figures "2021" shall be substituted;
(ii) against serial number 19B, in the entry in column (5), for the figures "2020", the figures "2021" shall be substituted;
2. This notification shall come into force with effect from the 1st day of October, 2020.
(Pramod Kumar)
Director to the
Government of India
Note: - The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 12/2017 Union Territory Tax (Rate), dated the 28th June, 2017, vide number G.S.R. 703 (E), dated the 28th June, 2017 and was last amended by notification No. 28/2019 - Union Territory Tax (Rate), dated the 31st December, 2019 vide number G.S.R. 974(E), dated the 31st December, 2019.
📚 Frequently Asked Questions (FAQs): Notification No. 04/2020 – Union Territory Tax (Rate)
Q1: What is Notification No. 04/2020 – Union Territory Tax (Rate)?
Answer:
It extends the UTGST exemption on transporting goods by air or sea from Indian customs stations to international destinations by amending Notification No. 12/2017-UTGST (Rate). notfctn-04-2020-utgst-rate-engl…
Q2: From when is this notification applicable?
Answer:
It comes into force from 01 October 2020. notfctn-04-2020-utgst-rate-engl…
Q3: Till when will the exemption on export transport services apply?
Answer:
The exemption is provided up to 30 September 2021 by substituting the year “2020” with “2021” in entries 19A & 19B. notfctn-04-2020-utgst-rate-engl…
Q4: Which services are exempt under this extension?
Answer:
✔ Air cargo export transport
✔ Sea cargo export transport
These services do not attract UTGST when moving goods from India to foreign locations.
Q5: Who benefits most from this exemption?
Answer:
Exporters
Freight forwarders
International courier companies
Logistics operators
Customs clearance agents
Q6: Is this exemption valid for domestic transportation?
Answer:
❌ No. It applies only to exports outside India.
➡ If dealing in domestic supply, ensure proper compliance:
GST Registration: https://finodha.in/online-gst-registration/
Q7: Do businesses need to reverse ITC due to exemption?
Answer:
Generally no ITC reversal is needed if export services are zero-rated under GST, but records must justify export linkage.
Q8: What happens if services are mixed (domestic + export)?
Answer:
Segregate billing carefully 📑
Export portion = exempt
Domestic portion = taxable
Need compliance support?
👉 https://finodha.in/gst-compliance/
Q9: Is GSTR-1/GSTR-3B still required for exporters?
Answer:
Yes ✔ Return filing continues as usual to claim export benefits like refund of ITC.
Start filing with Finodha ➜ https://finodha.in/gst-return-filing/
Q10: What if invoice wrongly charges UTGST?
Answer:
Issue credit note or claim refund of tax wrongly paid.
Finodha experts can help 👇
https://finodha.in/gst-compliance/
Q11: Under which legal power was this amendment issued?
Answer:
Issued under powers of UTGST Act, 2017 – Section 21 and CGST Act – Section 148, as noted in the notification. notfctn-04-2020-utgst-rate-engl…
Q12: What is the Gazette publication reference?
Answer:
Originally published via Notification No. 12/2017-UTGST (Rate) dated 28 June 2017. notfctn-04-2020-utgst-rate-engl…
Updated now by Notification 04/2020 – UTGST (Rate).
Q13: Why was this exemption extended?
Answer:
To support India's global trade competitiveness during pandemic-impacted years by reducing logistics GST burden.
Q14: Does this affect e-commerce exports too?
Answer:
Yes ✔ If shipping products abroad directly from customs → qualifies for exemption.
Q15: Is DSC required for export GST activities?
Answer:
Yes for filing LUT, refunds, and e-documents 🚀
✔ Apply here: https://finodha.in/online-dsc-digital-signature-certificate/
Download PDF: Notification No. 04/2020 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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