Notification No. 13/2017 – UTTR Explained

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[F. No. 334/1/2017- TRU]
Government of India
Ministry of Finance
(Department of Revenue)

New Delhi, the 28th June, 2017

Notification No. 13/2017 - Union Territory Tax (Rate): To notify the categories of services on which union territory tax will be payable under reverse charge mechanism under UTGST Act

GST: [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GSR......(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 notifies that on categories of supply of services mentioned in column (2) of the Table below, supplied by a person as specified in column (3) of the said Table, the whole of union territory tax leviable under section 7 of the said Union Territory Goods and Services Tax Act, shall be paid on reverse charge basis by the recipient of the such services as specified in Column (4) of the said Table:-

Table

Sl. No.	Category of Supply of Services	Supplier of service	Recipient of Service
(1)	(2)	(3)	(4)
1	Supply of Services by a goods transport agency (GTA) in respect of transportation of goods by road to- any factory registered under or governed by the Factories Act, 1948(63 of 1948);orany society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or	Goods Transport Agency (GTA)	Any factory registered under or governed by the Factories Act, 1948(63 of 1948); orany society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; orany co-operative society established by or under any law; orany person registered under the Central Goods and Services Tax

	any co-operative society established by or under any law; orany person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; orany body corporate established, by or under any law; orany partnership firm whether registered or not under any law including association of persons; orany casual taxable person.		Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or any body corporate established, by or under any law; orany partnership firm whether registered or not under any law including association of persons; orany casual taxable person; located in the taxable territory.
2	Services supplied by an individual advocate including a senior advocate by way of representational services before any court, tribunal or authority, directly or indirectly, to any business entity located in the taxable territory, including where contract for provision of such service has been entered through another advocate or a firm of advocates, or by a firm of advocates, by way of legal services, to a business entity.	An individual advocate including a        senior advocate or firm of advocates.	Any business entity located in the taxable territory.
3	Services supplied by  an  arbitral tribunal to a business entity.	An arbitral tribunal.	Any business entity located in the taxable territory.
4	Services    provided    by                  way            of sponsorship to any body corporate or partnership firm.	Any person	Any body corporate or partnership firm located in the taxable territory.
5	Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding, - renting of immovable property, andservices specified below-	Central Governme nt,     State Governme nt,   Union territory or local	Any business entity located in the taxable territory.

	services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government, State Government or Union territory or local authority;services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;transport  of  goods  or passengers.	authority
6	Services supplied by a director of a company or a body corporate to the said company or the body corporate.	A director of            a company or a body corporate	The company or a body corporate located in the taxable territory.
7	Services supplied by an insurance agent to any person carrying on insurance business.	An insurance agent	Any person carrying on insurance business,  located                  in            the                  taxable territory.
8	Services supplied by a recovery agent to a banking company or a financial  institution  or  a  non- banking financial company.	A recovery agent	A banking company or a financial institution or a non-banking financial company,  located  in  the  taxable territory.
9	Supply of services by an author, music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher,   music   company, producer or the like.	Author or music composer, photograp her, artist, or the like	Publisher, music company, producer or the like, located in the taxable territory.

Explanation.- For purpose of this notification,-

• The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.
• “Body Corporate” has the same meaning as assigned to it in clause (11) of section 2 of the Companies Act, 2013.
• the business entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the person who receives the legal services for the purpose of this notification.
• the words and expressions used and not defined in this notification but defined in the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, and the Union Territory Goods and Services Tax Act shall have the same meanings as assigned to them in those Acts.

2.    This notification shall come into force on the 1^st day of July, 2017.

(Ruchi Bisht)
Under Secretary to the
Government of India

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📚 Frequently Asked Questions (FAQs): Notification No. 13/2017 - Union Territory Tax (Rate)

Conclusion

Notification No. 13/2017-UTT(R) is one of the cornerstone notifications under GST. It establishes the Reverse Charge Mechanism for key service categories such as GTA services, legal services, director services, sponsorship services, insurance agent services, recovery agent services, and government services.

For businesses, understanding this notification is not optional. It directly affects GST liability, compliance obligations, cash-flow planning, and ITC eligibility. A strong understanding of RCM can help businesses avoid interest costs, penalties, and future GST disputes.

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Download PDF: Notification No. 13/2017 - Union Territory Tax (Rate)

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More Information: https://taxinformation.cbic.gov.in/

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