Notification No. 04/2021 - UTTR GST Rate Reduction

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

Notification No. 04/2021 - Union Territory Tax (Rate): Seeks to amend notification No. 11/2017- Union Territory Tax (Rate) so as to notify GST rates of various services as recommended by GST Council in its 44th meeting held on 12.06.2021

[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-sections (1), (3) and (4) of section 7, sub-section (1) of section 8, clauses (iv), (v) and (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, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do,

Hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.11/2017- Union Territory Tax (Rate), dated the 28^thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 702(E), dated the 28^thJune, 2017, namely:-

2. In the said notification, in the Table, against serial number 3, in column (3), in item (iv), after clause (f), the following shall be inserted, namely, -

“ Provided that during the period beginning from the 14^th June, 2021 and ending with the 30^th September, 2021, the union territory tax on service of description as specified in clause (f), shall, irrespective of rate specified in column (4), be levied at the rate of 2.5 per cent.’’.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: -The principal notification No. 11/2017 - Union Territory Tax (Rate), dated the 28^thJune, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 702(E), dated the 28^th June, 2017 and was last amended by Notification No. 02/2021- Union Territory Tax (Rate), the 2^nd June, 2021 vide number G.S.R. 379(E), dated the 2^nd June, 2021.

📚 Frequently Asked Questions (FAQs): Notification No. 04/2021 - Union Territory Tax (Rate)

Q1️⃣: What is Notification No. 04/2021 – Union Territory Tax (Rate)? 🧾

Answer:
This notification temporarily reduced the UTGST rate to 2.5% on certain services under clause (f) of item (iv) in Serial No. 3 of Notification No. 11/2017 – UTGST (Rate).
The change applied to COVID-related healthcare and allied services from 14th June to 30th September 2021.
👉 For detailed GST advice, visit Finodha GST Professionals.

Q2️⃣: When was this notification issued and what was its effective period? 📅

Answer:
It was issued on 14th June 2021, taking effect immediately and remained valid up to 30th September 2021.
During this period, the UTGST rate on relevant services was reduced to 2.5%, irrespective of the previously applicable rate.

Q3️⃣: What was the objective of Notification No. 04/2021? 🎯

Answer:
The primary goal was to:
✅ Provide temporary tax relief on essential services related to the COVID-19 response.
✅ Support healthcare and public welfare by reducing GST costs.
✅ Implement the 44th GST Council’s recommendations for quick relief during the pandemic.
(Focus Keywords: Notification No. 04/2021 – Union Territory Tax (Rate), GST relief COVID services)

Q4️⃣: Which earlier notification was amended by this one? 📘

Answer:
It amends Notification No. 11/2017 – Union Territory Tax (Rate) dated 28th June 2017.
This is the foundational notification defining GST rates for services under UTGST.

Q5️⃣: What is Serial No. 3(iv)(f) mentioned in this amendment? ⚙️

Answer:
This entry refers to construction and related works contracts supplied to the Central or State Government or local authorities for purposes such as:
🏥 Healthcare facilities,
🏫 Educational institutions, and
🏡 Public welfare projects.
Under the amendment, the GST rate for these services was temporarily reduced to 2.5% (UTGST) or 5% total (CGST + UTGST).

Q6️⃣: What period was covered under this concessional GST rate? 🕒

Answer:
The concessional GST rate of 2.5% (UTGST) applied to eligible services rendered between:
📅 14th June 2021 ➝ 30th September 2021
After this period, the rate reverted to the original rate specified in Notification No. 11/2017.

Q7️⃣: How does this notification relate to COVID-19 relief measures? 🩺

Answer:
The notification was part of the pandemic relief package introduced to reduce indirect tax burdens on key sectors.
It benefited contractors, service providers, and public entities working on:
COVID care centers
Hospitals and medical infrastructure
Temporary quarantine facilities
(Focus Keywords: Notification No. 04/2021 – Union Territory Tax (Rate), GST healthcare rate cut)

Q8️⃣: Was this notification applicable across all Union Territories? 🌍

Answer:
Yes ✅ The concessional UTGST rate applied uniformly across all Union Territories, including:
Delhi, Chandigarh, Andaman & Nicobar Islands, Lakshadweep, Puducherry, Daman & Diu, and Dadra & Nagar Haveli.
It ensured equal tax relief for all UT-registered service providers.

Q9️⃣: What was the GST Council’s role in this amendment? 🏛️

Answer:
The GST Council, in its 44th meeting, recommended a set of tax relief measures for pandemic support.
These included temporary rate reductions on medical goods and services, which were later formalized through this notification.
For detailed GST compliance support, visit GST Compliance Services.

Q🔟: Where can professionals access official GST notifications and amendments? 💡

Answer:
Professionals can check:
✅ CBIC’s Official Website – www.cbic.gov.in
✅ Gazette of India for published GST amendments
✅ Finodha.in for GST-related services like:
🧾 GST Return Filing
💼 Online GST Registration
🏢 Private Limited Compliance
💻 Digital Signature Certificate (DSC)

Claim your TDS Refund before it EXPIRE in

ITR Filing Starts Only

GST Return Filing Starts Only