Notification No. 07/2017 – UTTR Explained

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

Notification No. 07/2017 - Union Territory Tax (Rate): Exemption from UTGST supplies by CSD to Unit Run Canteens and supplies by CSD / Unit Run Canteens to authorised customers notified under section 8 (1) and section 55 CSD of CGST Act

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 (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 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 exempts, the inward supplies of goods, the description of which is specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2), from the whole of the Union territory tax as leviable thereon under section 7 of the Union Territory Good and Services Tax Act, 2017 (14 of 2017), namely:-

TABLE

S. No.	Tariff item, sub-heading, heading or Chapter	Description of supply of Goods
(1)	(2)	(3)
1.	Any chapter	The supply of goods by the CSD to the Unit Run Canteens
2.	Any chapter	The supply of goods by the CSD to the authorized customers
3.	Any chapter	The supply of goods by the Unit Run Canteens to the authorized customers

Explanation. –

In this notification, “tariff item”, “sub-heading” “heading” and “Chapter” shall mean respectively a tariff item, heading, sub-heading and 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. 07/2017 - Union Territory Tax (Rate)

Q1. What is Notification No. 07/2017-UTT (Rate)?

Answer: It is a GST exemption notification that grants UTGST exemption to specified supplies involving the Canteen Stores Department (CSD), Unit Run Canteens (URCs), and authorized customers.
The notification became effective from 1 July 2017.

Q2. What supplies are exempt under this notification?

Answer: Three categories are exempt:
CSD to URCs
CSD to authorized customers
URCs to authorized customers
These supplies are fully exempt from UTGST.

Q3. Does the exemption apply to all goods?

Answer: Yes, the notification covers supplies falling under any chapter of the Customs Tariff Schedule, provided the supply chain satisfies the notification requirements.

Q4. Who are authorized customers?

Answer: Authorized customers are persons entitled under CSD rules to purchase goods through the defence canteen system.
Eligibility is governed by defence and CSD regulations.

Q5. What is a Unit Run Canteen?

Answer: A Unit Run Canteen is a military canteen that distributes goods supplied through the CSD network to eligible beneficiaries.

Q6. Does the notification apply to services?

Answer: No.
The notification specifically refers to supplies of goods and not services.

Q7. Why was the exemption introduced?

Answer: The objective was to support defence welfare and prevent additional tax burden on eligible beneficiaries.

Q8. Does every canteen qualify?

Answer: No.
Only notified CSD and Unit Run Canteen transactions qualify for the exemption.

Q9. Is GST registration still required?

Answer: GST registration requirements depend on the applicable GST provisions and operational structure of the entity.
The exemption itself does not automatically remove registration obligations.