Notification No. 05/2020 – Union Territory Tax (Rate) Explained

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Notification No. 05/2020 – Union Territory Tax (Rate): To amend notification No. 12/ 2017- Union Territory Tax (Rate) so as to exempt satellite launch services provided by ISRO, Antrix Co. Ltd and NSIL as recommended by GST Council in its 42nd meeting held on 05.10.2020.

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-sections (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 28^th 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 28^th June, 2017, namely:—

In the said notification, in the Table, after serial number 19B and the entries relating thereto, the following shall be inserted, namely:-

―19C

9965

Satellite launch services supplied by Indian Space Research Organisation, Antrix Corporation Limited or New Space India Limited.

Nil

Nil.‖

(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 28^th June, 2017, vide number G.S.R. 703 (E), dated the 28^th June, 2017 and was last amended by notification No. 04/2020 - Union Territory Tax (Rate), dated the 30^th September, 2020 vide number G.S.R. 606(E), dated the 30^th September, 2020.

📚 Frequently Asked Questions (FAQs): Notification No. 05/2020 – Union Territory Tax (Rate)

Q1: What does Notification No. 05/2020 – Union Territory Tax (Rate) provide?

Answer:
It fully exempts GST on satellite launch services supplied by ISRO, Antrix & NSIL.
notfctn-05-2020-utgst-rate-engl…

Q2: From when is the exemption applicable?

Answer:
Effective 16 October 2020.

Q3: Why was the exemption given?

Answer:
To promote Indian space launch business and attract global customers.

Q4: Which SAC code is applicable?

Answer:
SAC 9965 – Satellite launch services.

Q5: Who benefits financially?

Answer:
✔ Foreign & Domestic satellite owners
✔ Indian space-tech supply chain
✔ ISRO revenue expansion

Q6: Is ITC allowed on inputs?

Answer:
Yes ✔ No specific ITC blocking provision in the notification.

Q7: Are private launch service providers covered?

Answer:
No ❌ Only ISRO, Antrix & NSIL are covered as per table.

Q8: Does this exemption apply to payload testing?

Answer:
If bundled as a part of launch service → Yes.

Q9: Does a startup launching CubeSats benefit?

Answer:
Yes ✔ Lower cost → better access to space missions.

Q10: Does the notification apply to exports only?

Answer:
No ✔ Both domestic & international launches are exempt.

Q11: Is GST exemption permanent?

Answer:
Applies until modified by future GST Council decisions.

Q12: Does NSIL’s commercial launch also exempt?

Answer:
Yes ✔ NSIL is officially notified in this entry.

Q13: Any place of supply impact?

Answer:
Not relevant — service itself is exempt.

Q14: Do other government agencies get exemption?

Answer:
Only the three notified organizations qualify.

Q15: Can Finodha help space-tech startups with GST compliance?

Answer:
Absolutely 🚀
https://finodha.in/gst-compliance/

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