GST Notification No. 12/2022 – Union Territory Tax Updates

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 12/2022 - Union Territory Tax (Rate): Seeks to amend notification No. 1/2017- Union Territory Tax (Rate)

[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 (1) of section 7 of the UTGST Act, 2017 (14 of 2017) read with sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 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, Ministry of Finance (Department of Revenue), No.1/2017- Union Territory Tax (Rate), dated the 28^thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 710(E), dated the 28^thJune, 2017, namely:-

In the said notification, -

(A). in Schedule I – 2.5%, -

against S. No. 102A, in column (3), for the entry, the following entry shall be substituted, namely: -
“Ethyl alcohol supplied to Oil Marketing Companies or Petroleum refineries for blending with motor spirit (petrol)”;

against S. No. 103A, in column (3), for the entry, the following entry shall be substituted, namely: -
“Bran, sharps and other residues, whether or not in the form of pellets, derived from the sifting, milling or other working of cereals or of leguminous plants [other than aquatic feed including shrimp feed and prawn feed, poultry feed and cattle feed, including grass, hay and straw, supplement and additives, husk of pulses including chilka, concentrates including chuni or churi, khanda, wheat bran, de-oiled cake]”;

(B). in Schedule II – 6%, -

against S. No. 48, in column (3), for the entry, the following entry shall be substituted, namely: -
“Fruit pulp or fruit juice based drinks [other than Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice]”;

against S. No. 180, in column (3), for the entry, the following entry shall be substituted, namely: -
“Mathematical boxes, geometry boxes and colour boxes”;

(C). in Schedule III – 9%, against S. No. 25, in column (3), for the entry, the following entry shall be substituted, namely: -
“Ethyl alcohol and other spirits, denatured, of any strength [other than ethyl alcohol supplied to Oil Marketing Companies or Petroleum refineries for blending with motor spirit (petrol)]”.

2. This notification shall come into force with effect from the 1^st day of January, 2023.

(Vikram Vijay Wanere)
Under Secretary

Note: - The principal notification No.1/2017-Union Territory Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 710(E)., dated the 28^th June, 2017 and was last amended by notification No. 06/2022 – Union Territory Tax (Rate), dated the 13^th July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 552(E), dated the 13^th July, 2022.

📚 Frequently Asked Questions (FAQs): Notification No. 12/2022 - Union Territory Tax (Rate)

Q1: What is Notification No. 12/2022 – Union Territory Tax (Rate) all about?

Answer:
This notification, issued on 30th December 2022, amends Notification No. 1/2017 – Union Territory Tax (Rate). It updates GST rates on specific goods like ethyl alcohol, fruit pulp drinks, residues of cereals, and geometry/colour boxes. The changes became effective from 1st January 2023.

Q2: What is the new GST treatment for ethyl alcohol under this notification?

Answer:
Schedule I (2.5%) – Ethyl alcohol supplied to Oil Marketing Companies or Petroleum refineries for blending with petrol.
Schedule III (9%) – Ethyl alcohol and other denatured spirits (except for blending with petrol).

Q3: How are residues of cereals and legumes taxed after this amendment?

Answer:
Under Schedule I (2.5%), the entry for bran, sharps, and other residues is revised. It excludes aquatic feed, poultry feed, cattle feed (like hay, straw, chuni, khanda, de-oiled cake, wheat bran). This ensures clarity between taxable and exempt animal feed products.

Q4: What is the GST rate on fruit pulp or juice-based drinks? 🥤

Answer:
Such drinks now fall under Schedule II (6%), but carbonated fruit beverages or carbonated beverages with fruit juice are excluded from this concessional rate.

Q5: What about geometry boxes, mathematical boxes, and colour boxes? 📦

Answer:
These educational items are explicitly covered under Schedule II (6%), making their GST rate uniform and clear.

Q6: When did the revised rates come into force?

Answer:
All changes under this notification became applicable from 1st January 2023.

Q7: Why was Notification No. 12/2022 necessary?

Answer:
It aligned the GST framework with the recommendations of the GST Council, removing ambiguities in rates for ethyl alcohol, cereal residues, fruit drinks, and educational kits.