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[F. No. CBIC-190354/180/2023-TO(TRU-II)-CBEC]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, dated the 29th September, 2023
Notification No. 11/2023 - Union Territory Tax (Rate): Seeks to amend Notification No 01/2017- Union territory Tax (Rate) dated 28.06.2017.
[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]
G.S.R (E):-In exercise of the powers conferred by sub-section (1) of section 7 of the UTGST 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.1/2017-Union Territory Tax (Rate), dated the 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number
G.S.R. 710(E)., dated the 28thJune, 2017, namely:- In the said notification,
(i). in Schedule IV-
(a). after S. No. 227 and the entries related thereto, the following S. no. and entries shall be inserted, namely:-
| (1) | (2) | (3) |
| "227A | Any Chapter | Specified actionable claim; |
| Explanation: “specified actionable claim” as defined in section 2(102A) of the CGST Act, 2017 means the actionable claim involved in or by way of— betting; casinos; gambling; horse racing; lottery; or online money gaming;”; |
(b). S. No. 228 and 229 and the entries relating thereto shall be omitted.
(ii). in the Explanation, after clause (iv), the following clause shall be inserted, namely:
"(v) The words and expressions used and not defined in this notification, but defined in the Central Goods and Service Tax Act, 2017 (12 of 2017), the Integrated Goods and Services Tax Act, 2017 (13 of 2017) and the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), shall have the same meanings as assigned to them in those Acts."
2. This notification shall come into force on the 1st day of October, 2023.
(RAJEEV RANJAN)
Under Secretary
Note: - The principal notification No.1/2017-Union Territory Tax (Rate), dated the 28thJune, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 710(E), dated the28thJune, 2017, and was last amended by notification No.09/2023 –Union Territory Tax (Rate), dated the 26th July, 2023 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 549(E), dated the 26th July, 2023.
📚 Frequently Asked Questions (FAQs): Notification No. 11/2023 - Union Territory Tax (Rate)
Q1: What is the purpose of Notification No. 11/2023 - Union Territory Tax (Rate)?
Answer: Notification No. 11/2023 UTGST seeks to amend Notification No. 01/2017 to revise the tax rate structure under Schedule IV, specifically targeting "specified actionable claims" including betting, gambling, horse racing, online gaming, lotteries, and casinos. It became effective from 1st October 2023.
Q2: What are "specified actionable claims" under this notification?
Answer: As per the inserted Entry 227A, “specified actionable claims” include those involved in:
🎰 Betting
🃏 Casinos
🎲 Gambling
🏇 Horse Racing
🎟️ Lottery
🕹️ Online Money Gaming
This aligns with the definition given under Section 2(102A) of the CGST Act, 2017.
Q3: What entries were omitted by this amendment?
Answer: Entries S. No. 228 and 229 from Schedule IV were removed. These entries likely pertained to other classifications of services or goods, thereby streamlining the tax applicability on newly defined actionable claims.
Q4: How does this notification affect businesses operating in UTs involved in gaming & betting?
Answer: Entities offering betting, casinos, lotteries, or online money gaming services in Union Territories now fall directly under taxable actionable claims. They must ensure timely GST registration and compliance. Need help? 👉 GST Compliance Services
Q5: From when is Notification No. 11/2023 - UTGST applicable?
Answer: This notification took effect from 1st October 2023, giving businesses limited time to update their accounting systems and GST returns accordingly.
Q6: Which legal definitions apply to this notification?
Answer: The notification states that any undefined terms must refer to the definitions in the:
CGST Act, 2017
IGST Act, 2017
UTGST Act, 2017
This ensures uniformity and reduces ambiguity in interpretation.
Q7: How can startups or online platforms ensure compliance under this new UTGST rule?
Answer: Startups in gaming, fantasy leagues, or digital lotteries must update their GST filings. It is recommended to consult a GST expert to assess implications. ✅ Book a GST Expert
Q8: Does this impact both physical and digital formats of gaming and betting?
Answer: Yes. Both offline and online formats such as physical casinos or digital betting apps fall under the scope of “specified actionable claims” and are taxable.
Q9: Are there any compliance support services available?
Answer: Absolutely! You can get support for:
GST Registration
GST Return Filing
Setup Business
Online DSC Services
Private Limited Company Compliance
🔍 Need Expert Help with GST on Online Gaming or Betting?
Connect with India’s Trusted GST Professionals at Finodha.in
Download PDF: Notification No. 11/2023 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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