Notification No. 13/2019 - Union Territory Tax (Rate) Update

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Notification No. 13/2019 - Union Territory Tax (Rate): which seeks to exempt the hiring of Electric buses by local authorities from GST.

[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 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 further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.12/2017- 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. 703(E), dated the 28^th June, 2017, namely:-

In the said notification, in the Table, against serial number 22, in the entries in column (3), after clause (a), the following clause shall be inserted, namely: -

(3)

‘(aa) to a local authority, an Electrically operated vehicle meant to carry more than twelve passengers; or Explanation.- For the purposes of this entry, “Electrically operated vehicle” means vehicle falling under Chapter 87 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) which is run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicle.’.

2. This notification shall come into force with effect from the 1^st of August, 2019.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

Note: -The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 12/2017 - Union Territory Tax (Rate), dated the 28^th June, 2017, vide number G.S.R. 703 (E), dated the 28^thJune, 2017 and was last amended by notification No. 4/2019 - Union Territory Tax (Rate), dated the 29^th March 2019 vide number G.S.R. 263(E), dated the 29^th March 2019.

📚 Frequently Asked Questions (FAQs): Notification No. 13/2019 - Union Territory Tax (Rate)

Q1: What is Notification No. 13/2019 - Union Territory Tax (Rate)?

Answer:
It exempts UTGST on hiring services of electric buses provided to local authorities.

Q2: From when is the exemption applicable?

Answer:
From 1 August 2019.

Q3: Who gets the benefit?

Answer:
Municipal Corporations
Local Authorities
Government bodies
Hiring electric buses.

Q4: What type of vehicles qualify?

Answer:
Only:
Electrically operated
Carrying more than 12 passengers
Under Chapter 87

Q5: Does diesel/CNG bus hiring get exemption?

Answer:
❌ No. Only electric buses.

Q6: Is GST registration still required for bus operators?

Answer:
Yes 👍
If turnover exceeds threshold, registration is compulsory.
👉 Register here: https://finodha.in/online-gst-registration/

Q7: Should I issue GST invoice even if exempt?

Answer:
Yes. Mention exempt supply in invoice and returns.

Q8: Do I need to file GST returns for exempt services?

Answer:
Yes. Returns must be filed regularly.
👉 https://finodha.in/gst-return-filing/

Q9: Can I claim Input Tax Credit (ITC)?

Answer:
Generally, ITC may not be available for exempt outward supply. Consult GST expert.

Q10: What is “local authority”?

Answer:
Includes:
Municipal Corporation
Panchayat
Development Authority
Government transport body

Q11: Does leasing also qualify or only hiring?

Answer:
Hiring/contract supply of buses qualifies if conditions met.

Q12: What documents should be maintained?

Answer:
Hiring contract
Vehicle details
Electricity-only proof
Invoice copies
GST returns

Q13: Does this apply in all India?

Answer:
Specifically UTGST areas. Similar CGST exemption exists nationally.

Q14: How does this help bus operators financially?

Answer:
Lower tax cost
More competitive bids
Higher margins
More government contracts

Q15: How can Finodha help my transport business?

Answer:
Finodha supports:
✔ GST Registration
✔ Return Filing
✔ Compliance
✔ Company setup
✔ ROC filings
👉 https://finodha.in/setup-business/
👉 https://finodha.in/gst-compliance/