Notification No. 07/2023 - UTT (R) Satellite Launch GST

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Notification No. 07/2023 - Union Territory Tax (Rate): Seeks to amend notification No. 12/2017- Union Territory Tax (Rate) so as to notify change in GST with regards to services as recommended by GST Council in its 50th meeting held on 11.07.2023.

[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 (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 amendment further to amend 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, against serial number 19C, for the entry in column (3), the following entry shall be substituted: -

2. This notification shall come into force with effect from 27^th July,2023.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: The principal notification no. 12/2017 - Union Territory Tax (Rate), dated the 28th June, 2017,was published in the Gazette of India, Extraordinary, vide number G.S.R. 703 (E), dated the 28th June, 2017 and last amended vide notification no. 01/2023 – Union Territory Tax (Rate), dated the 28^th February, 2023 published in the official gazette vide number G.S.R. 145(E), dated the 28^th February, 2023.

📚 Frequently Asked Questions (FAQs): Notification No. 07/2023 - Union Territory Tax (Rate)

✅ Q1: What is Notification No. 07/2023 - Union Territory Tax (Rate)?

Answer:
Notification No. 07/2023 - Union Territory Tax (Rate), dated 26th July 2023, amends Notification No. 12/2017 to substitute the entry at Serial No. 19C in the services exemption table with “Satellite launch services.”
This change was recommended by the GST Council in its 50th meeting (held on 11th July 2023) and aims to ensure GST clarity and uniformity on space-related services.
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✅ Q2: What exactly was changed by this notification?

Answer:
The only amendment in this notification is in Serial No. 19C of the table in Notification No. 12/2017. The old service description was replaced with just:
“Satellite launch services.”
This simplifies the entry and ensures that satellite launch services remain exempt under UTGST.
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✅ Q3: What is the effective date of Notification No. 07/2023?

Answer:
This notification came into effect from 27th July 2023. All satellite launch services from this date onward are to be treated as per the updated entry.
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✅ Q4: Why was “Satellite Launch Services” emphasized in this amendment?

Answer:
This change provides clear legal recognition that satellite launch services are GST-exempt. It aligns with India’s growing role in the space economy and encourages startups and ISRO collaborations in the satellite industry.
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✅ Q5: How does this affect private space companies in India?

Answer:
Private space companies such as Skyroot Aerospace, Agnikul Cosmos, and others can benefit from this exemption. Since satellite launches are now clearly GST-exempt, it reduces service costs, making India a competitive space launch hub.
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✅ Q6: Was this exemption applicable earlier as well?

Answer:
Yes, the exemption existed before, but the wording was more detailed or ambiguous. The new notification simplifies the terminology to avoid confusion and ensure broader understanding and uniform compliance.
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✅ Q7: What was the original notification being amended here?

Answer:
The amendment modifies Notification No. 12/2017 - UT Tax (Rate), which originally listed exempted services. This notification is part of GST efforts to identify services eligible for full tax relief in Union Territories.
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✅ Q8: Is this exemption valid across all Union Territories?

Answer:
✅ Yes. As a Union Territory Tax (Rate) notification, it applies uniformly across all Union Territories without a legislature, such as Lakshadweep, Andaman & Nicobar Islands, Daman & Diu, etc.
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✅ Q9: What GST section gives authority to this change?

Answer:
This notification is issued under the authority of:
Section 7(3), 7(4) and 8(1) of the UTGST Act, 2017
Sections 15(5) and 148 of the CGST Act, 2017
These sections allow the Central Government to make exemptions in public interest on GST Council recommendations.
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✅ Q10: How does this support the Make in India and Digital India missions?

Answer:
By exempting satellite launch services, India promotes domestic space innovations, boosts Make in India, and supports Digital India via satellite-based connectivity. It makes India a cost-effective space launch hub globally.
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