Notification No. 12/2023 – UTT (R) Input Tax Credit Rules

Important Keyword: F. No. CBIC-190354/195/2023-TO (TRU-II)-CBEC, Notification No. 12/2023- Union Territory Tax (Rate), UTGST amendment 2023, Input tax credit change, transport GST rate, Union Territory Tax Notification 12/2023, UTGST cab service input,

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[F. No. CBIC-190354/195/2023-TO (TRU-II)-CBEC]
Government of India
Ministry of Finance
(Department of Revenue)

New Delhi, the 19^th October, 2023

Notification No. 12/2023 - Union Territory Tax (Rate): Seeks to amend Notification No 11/2017- Union territory Tax (Rate) dated 28.06.2017.

[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-sections (1), (3) and (4) of section 7, sub-section (1) of section 8, clause (iv), clause (v) and clause (xxvii) of section 21 of the UTGST Act, 2017 (14 of 2017), read with sub-section (5) of section 15,  sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government,   

on   the   recommendations   of   the   Council, and   on   being   satisfied   that it   is necessary in    the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.11/2017-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. 702(E), dated the 28th June, 2017, namely:-

In the said notification, -

(A) in the Table,

(i). against serial number 8, in column (3), in item (vi), after the condition in column (5) against the rate of 2.5 percent, the following condition shall be inserted, namely:-

“Provided further that where the supplier of input service in the same line of business charges Union Territory tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken.

Illustration: ‘A’ engages ‘B’ for transport from New Delhi to Jaipur in a motor cab for Rs. 1000. ‘B’, for supplying the said service, hires a motor cab with operator from ‘C’ for Rs. 800. ‘C’ charges ‘B’ Union Territory tax at the rate of 6% (Rs. 48). If ‘B’ charges ‘A’ Union Territory tax at the rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 48.”;

(ii). against serial number 10, in column (3), in item (i), after the condition in column (5) against the rate of 2.5 percent, , the following condition shall be inserted, namely:-

“Provided further that where the supplier of input service in the same line of business charges Union Territory tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken.

Illustration: ‘A’ engages ‘B’ for transport from New Delhi to Jaipur in a motor cab for Rs. 1000. ‘B’, for supplying the said service, hires a motor cab with operator from ‘C’ for Rs.

800. ‘C’ charges ‘B’ Union Territory tax at the rate of 6% (Rs. 48). If ‘B’ charges ‘A’ Union Territory tax at the rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 48.”;

(iii). against serial number 34, -

• in column (3), in item (iv), for the words “totalisator or a license to” , the words “licensing a” shall be substituted;

• in column (3), item (v) and the entries relating thereto shall be omitted;

(B). in the Annexure: Scheme of Classification of Services,-

• serial number 696 and the entries relating thereto shall be omitted;

• serial number 698 and the entries relating thereto shall be omitted.

2. This notification shall come into force with effect from the 20^th day of October, 2023.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: -The principal notification number 11/2017 -Union 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. 702 (E), dated the 28th June, 2017 and was last amended vide notification number 06/2023-Union Tax (Rate), dated the 26^th July, 2023 published in the Gazette of India, Extraordinary, Part II , Section 3 , Sub-section (i) vide number G.S.R. 539(E), dated the 26^th July, 2023.

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