Notification No. 12/2018 - UTGST Explained

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Notification No. 12/2018 – Union Territory Tax (Rate): Seeks to exempt payment of tax under section 7(4) of the UT GST Act, 2017 till 30.09.2018.

GST: [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i)]

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 makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2017 –Union Territory Tax (Rate), dated the 28^th June, 2017, published in the Gazette of India,

Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 717 (E), dated the 28^th June, 2017, and last amended vide notification No. 10/2018- Union Territory Tax (Rate), dated the 23^rd March, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 271 (E), dated the 23^rd March, 2018, namely:-

In the said notification, for the figures, letters and words “30^th day of June, 2018”, the figures, letters and words “30^th day of September, 2018” shall be substituted.

(Dr. Sree Parvathy S.L)
Under Secretary to the
Government of India

Note: - The principal notification No. 8/2017-Union Territory Tax (Rate), dated the 28^thJune,2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i) vide number G.S.R. 717 (E), dated the 28^thJune, 2017 and last amended vide 10/2018- Union Territory Tax (Rate), dated the 23^rd March, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 271 (E), dated the 23^rd March, 2018.

📚 Frequently Asked Questions (FAQs): Notification No. 12/2018 – Union Territory Tax (Rate)

Q1: What is Notification No. 12/2018 - Union Territory Tax (Rate)?

Answer:
It is a notification extending exemption from payment of GST under Section 7(4) UTGST till 30.09.2018 12.

Q2: What is Section 7(4) of UTGST Act?

Answer:
It deals with Reverse Charge Mechanism (RCM) on purchases from unregistered suppliers.

Q3: What was the original deadline?

Answer:
Originally, exemption was valid till 30th June 2018.

Q4: Till when was exemption extended?

Answer:
Till 30th September 2018 12.

Q5: Does this apply to all Union Territories?

Answer:
Yes, it applies to all Union Territories governed by UTGST Act.

Q6: Was RCM permanently removed?

Answer:
No, it was temporarily suspended. Later amendments further modified provisions.

Q7: Should businesses report such purchases?

Answer:
Yes, maintain proper records even if RCM not payable.

Q8: Do I need GST registration if purchasing from unregistered supplier?

Answer:
Registration requirement depends on turnover, not solely on such purchases.
Need GST Registration help?
👉 https://finodha.in/online-gst-registration/

Q9: What if business paid RCM mistakenly?

Answer:
You may claim refund or adjust subject to GST provisions.

Q10: Did this notification affect composition scheme?

Answer:
Indirectly, as composition dealers were also impacted by RCM rules.

Q11: What is Reverse Charge Mechanism?

Answer:
Under RCM, the recipient pays GST instead of supplier.

Q12: Is RCM applicable today on unregistered purchases?

Answer:
Currently, Section 9(4)/7(4) provisions have been amended and apply only to specified categories notified by government.
Always check latest updates with GST expert.

Q13: How to ensure compliance?

Answer:
Maintain vendor records
Check registration status
Monitor RCM notifications
File accurate returns
👉 GST Compliance Support: https://finodha.in/gst-compliance/

Q14: Does this affect Income Tax?

Answer:
No, this is purely GST-related. Income tax treatment remains separate.
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