Important Keyword: Notification 08/2017 UTGST Rate, GST reverse charge exemption, ₹5000 reverse charge limit, Unregistered supplier GST, GST RCM exemption, UTGST notification 08/2017, GST compliance relief, GST reverse charge provisions, GST transition notification, GST unregistered purchases,
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[F.No.354/117/2017-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 28th June, 2017
Notification No. 08/2017 - Union Territory Tax (Rate): UTGST exemption from reverse charge upto Rs.5000 per day under section 8 (1)
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 intra-State supplies of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the Union territory tax leviable thereon under sub-section (4) of section 7 of the said Union Territory Goods and Services Tax Act:
Provided that the said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds five thousand rupees in a day.
2. This notification shall come into force with effect from the 1st day of July, 2017.
(Mohit Tewari)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 08/2017 - Union Territory Tax (Rate)
Q1. What is Notification No. 08/2017-UTT (Rate)?
Answer: It provided exemption from reverse charge GST on purchases from unregistered suppliers up to ₹5,000 per day.
The objective was to reduce compliance burden during the initial GST rollout.
Q2. What was the exemption limit?
Answer: The limit was ₹5,000 per day.
The threshold applied to the aggregate value of eligible purchases received from unregistered suppliers.
Q3. Who benefited from this notification?
Answer: GST-registered businesses purchasing goods or services from unregistered suppliers.
The relief was especially useful for businesses making frequent small-value purchases.
Q4. Did the limit apply supplier-wise?
Answer: No.
The threshold was based on aggregate daily purchases rather than individual suppliers.
Q5. What is reverse charge?
Answer: Reverse charge shifts GST liability from the supplier to the recipient.
Instead of collecting GST from the supplier, the recipient directly pays tax to the Government.
Q6. Was the exemption automatic?
Answer: Yes, subject to fulfillment of the notification conditions and threshold requirements.
Q7. Did it apply to goods and services?
Answer: Yes.
The notification covered eligible inward supplies from unregistered suppliers.
Q8. Why was the exemption introduced?
Answer: The Government wanted to reduce compliance burden during GST implementation.
Small purchases from local vendors were common and difficult to track individually.
Q9. Was this exemption permanent?
Answer: No.
It formed part of the transitional GST framework and was affected by later policy developments.
Q10. How was the threshold calculated?
Answer: The value of all eligible purchases from unregistered suppliers during a day was aggregated.
Q11. Did businesses still need records?
Answer: Yes.
Documentation remained important even when tax liability was exempt.
Q12. What happened if purchases exceeded ₹5,000?
Answer: Reverse charge implications could arise under applicable GST provisions.
Download PDF: Notification No. 08/2017 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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