Notification No. 08/2023 - UTT (R) GST Forward vs Reverse

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Notification No. 08/2023 - Union Territory Tax (Rate): Seeks to amend notification No. 13/2017- 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)]

GSR (E).-In exercise of the powers conferred by sub-section (3) of section 7 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, 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.13/2017-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. 704(E), dated the 28th June, 2017, namely: -

In the notification, in Annexure III, for the words and figures “during the Financial Year under forward charge”, the words and figures “from the Financial Year under forward charge and have not reverted to reverse charge mechanism ” shall be substituted.

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

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: - The principal notification no. 13/2017 - Union Territory Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 704 (E), dated the 28th June, 2017 and was last amended vide notification no. 02/2023 - Union Territory Tax (Rate), dated the 28^th February, 2023 published in the official gazette vide number G.S.R. 146(E), dated the 28^th February, 2023.

📚 Frequently Asked Questions (FAQs): Notification No. 08/2023 - Union Territory Tax (Rate)

✅ Q1: What is Notification No. 08/2023 - Union Territory Tax (Rate)?

Answer:
Notification No. 08/2023 - Union Territory Tax (Rate), issued on 26th July 2023, seeks to amend Notification No. 13/2017 - UT Tax (Rate). This amendment updates the language in Annexure III to reflect changes in service taxation under GST, specifically related to forward charge vs. reverse charge. The revised wording clarifies that the service providers have not reverted to reverse charge mechanism from a forward charge basis.
This change was recommended in the 50th GST Council Meeting held on 11th July 2023 and took effect from 27th July 2023.
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✅ Q2: What does the amendment in Annexure III specifically change?

Answer:
The amendment replaces the phrase:
“during the Financial Year ____ under forward charge”
➡ With
“from the Financial Year ____ under forward charge and have not reverted to reverse charge mechanism”.
🔍 This revision ensures that service providers continuing under the forward charge mechanism and not switching back to reverse charge are correctly documented.
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✅ Q3: When does Notification No. 08/2023 come into effect?

Answer:
This notification comes into force from 27th July 2023. This means the revised wording applies to service tax calculations and declarations from this date onward.
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✅ Q4: Why was this amendment made in Notification No. 13/2017?

Answer:
The amendment was introduced to clarify tax liability on services by addressing ambiguities in forward and reverse charge mechanisms. The GST Council’s 50th meeting aimed to streamline tax language and ensure consistent interpretation across UT jurisdictions.
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✅ Q5: Who is affected by this change in the GST notification?

Answer:
This change primarily affects:
Service Providers operating under the forward charge mechanism
Businesses that earlier operated under reverse charge but now switched to forward charge
Tax professionals who prepare and certify GST returns
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✅ Q6: What is the difference between Forward Charge and Reverse Charge in GST?

Answer:
Forward Charge: The supplier of services is liable to pay GST.
Reverse Charge: The recipient of services is liable to pay GST.
This amendment ensures only suppliers under forward charge and who haven't reverted to reverse charge are reflected in Annexure III.
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✅ Q7: What was the original Notification No. 13/2017 about?

Answer:
Notification No. 13/2017-UTTR specified the services subject to reverse charge. It has undergone multiple amendments to align with evolving GST policies. The latest being Notification No. 08/2023.
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✅ Q8: Where can I read the official copy of Notification No. 08/2023?

Answer:
The official notification is published by the Ministry of Finance under GSR and is available on the CBIC website. Alternatively, you can refer to Finodha’s GST update section for simplified summaries.
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✅ Q9: Is this change applicable to all Union Territories in India?

Answer:
✅ Yes. Since this is a Union Territory Tax (Rate) notification, it applies to all Union Territories without a legislature, like Chandigarh, Daman & Diu, Andaman & Nicobar, etc.
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✅ Q10: What role did the 50th GST Council Meeting play in this update?

Answer:
The 50th GST Council Meeting, held on 11th July 2023, proposed several service-related GST changes. Notification No. 08/2023 reflects one of these key recommendations, aimed at clarifying GST liability declarations under forward charge.
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