Notification No. 11/2018 - UTGST Explained

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Notification No. 11/2018 - Union Territory Tax (Rate): Seeks to amend notification No. 04/2017- Union Territory Tax (Rate) dated 28.06.2017 so as to notify levy of Priority Sector Lending Certificate (PSLC) under Reverse Charge Mechanism (RCM)

GST: [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-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.4/2017- 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. 713 (E), dated the 28th June, 2017, namely:-

In the said notification, after S. No. 6 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: -

TABLE

S. No.	Tariff item, sub-heading, heading or Chapter	Description of Goods	Supplier of goods	Recipient of supply
(1)	(2)	(3)	(4)	(5)
7.	Any Chapter	Priority Sector Lending Certificate	Any registered person	Any registered person

(Pramod Kumar)
Deputy Secretary to
Government of India

Note: - The principal notification No. 4/2017- Union Territory Tax (Rate), dated the 28th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 713(E), dated the 28th June, 2017 and last amended by Notification No. 43/2017- Union Territory Tax(Rate) dated 14th November, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1399 (E), dated the 14th November, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 11/2018 – Union Territory Tax (Rate)

Q1: What is Notification No. 11/2018 - Union Territory Tax (Rate)?

Answer:
It is a notification issued on 28 May 2018 bringing PSLC transactions under Reverse Charge Mechanism 11.

Q2: What is PSLC?

Answer:
Priority Sector Lending Certificate is a certificate issued by banks to fulfill RBI priority lending targets.

Q3: Who pays GST on PSLC?

Answer:
The recipient (buyer) pays GST under RCM.

Q4: Does supplier charge GST invoice?

Answer:
No, supplier does not charge GST. Recipient pays under reverse charge.

Q5: What is GST rate on PSLC?

Answer:
Generally treated as financial service taxable at 18% (9% UTGST + 9% CGST).

Q6: Does this apply to unregistered persons?

Answer:
Both supplier and recipient must be registered persons.

Q7: Is PSLC treated as goods or services?

Answer:
PSLC is notified under goods category for RCM purposes in Notification 4/2017 as amended 11.

Q8: Should RCM liability be shown in GSTR-3B?

Answer:
Yes, recipient must declare RCM tax liability in GST returns.
👉 File correctly with Finodha:
https://finodha.in/gst-return-filing/

Q9: Is ITC available on PSLC RCM?

Answer:
Yes, if used in course or furtherance of business and not restricted.

Q10: Does this apply in all states?

Answer:
This applies to Union Territories under UTGST. Similar CGST notification applies in states.

Q11: What if GST is not paid under RCM?

Answer:
Interest and penalty may apply under GST law.

Q12: Is GST registration mandatory for PSLC trading?

Answer:
Yes, if turnover exceeds threshold or engaged in taxable supplies.
Need GST Registration?
👉 https://finodha.in/online-gst-registration/

Q13: Does this impact income tax?

Answer:
No direct impact. PSLC income remains taxable under Income Tax separately.
Need ITR filing help?
👉 https://finodha.in/income-tax-return-filing-online/