Notification No. 15/2018 - UTGST Explained

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Notification No. 15/2018 - Union Territory Tax (Rate): Seeks to amend notification No. 13/2017- Union Territory Tax (Rate) so as to specify services supplied by individual Direct Selling Agents (DSAs) to banks/ non-banking financial company (NBFCs) to be taxed under Reverse Charge Mechanism (RCM).

GST: [TO BE PUBLISHED IN THE GAZZETE 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 makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.13/2017- 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. 704(E), dated the 28^thJune, 2017, namely:-

In the said notification, -

in the Table, after serial number 10 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

(1)	(2)	(3)	(4)
“11	Services supplied by individual Direct Selling Agents (DSAs) other than a body corporate, partnership or limited liability partnership firm to bank or non-banking financial company (NBFCs)	Individual Direct Selling Agents (DSAs) other than a body corporate, partnership or limited liability partnership firm.	A banking company or a non-banking financial company, located in the taxable territory.”;

in the Explanation, after clause (f), the following clause shall be inserted, namely: -

‘(g) “renting of immovable property” means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, includes letting, leasing, licensing or other similar arrangements in respect of immovable property.’.

2. This notification shall come into force with effect from 27^th of July, 2018.

(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. 13/2017 - Union Territory Tax (Rate), dated the 28^th June, 2017, vide number G.S.R. 704 (E), dated the 28^thJune, 2017 and was last amended by notification No. 3/2018 - Union Territory Tax (Rate), dated the 25^th January, 2018 vide number G.S.R. 77 (E), dated the 25^th January, 2018.

📚 Frequently Asked Questions (FAQs): Notification No. 15/2018 – Union Territory Tax (Rate)

Q1: What is Notification No. 15/2018 - Union Territory Tax (Rate)?

Answer:
It is a GST amendment bringing individual DSA services to banks/NBFCs under Reverse Charge Mechanism 15.

Q2: From when is this applicable?

Answer:
It is effective from 27 July 2018 15.

Q3: Who is covered under this notification?

Answer:
Individual Direct Selling Agents supplying services to banks or NBFCs.

Q4: Does RCM apply to company DSAs?

Answer:
No. It applies only to individual DSAs (not body corporate, LLP, or partnership).

Q5: Who pays GST under this arrangement?

Answer:
The bank or NBFC pays GST under Reverse Charge.

Q6: Should DSA register under GST?

Answer:
If exclusively supplying RCM services, registration may not be mandatory. However, evaluate turnover and other supplies.
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