Notification No. 15/2021 - UTTR GST Service

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Notification No. 15/2021 - 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, SUB-SECTION (i)]

G.S.R....(E).- In exercise of the powers conferred by sub-sections (1), (3) and (4) of section 7, subsection (1) of section 8, clause (iv), clause (v) and clause (xxvii) of section 21 of the Union Territory Goods and Services Tax 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 amendments further to amend 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 28^th June, 2017, namely:-

In the said notification, in the TABLE, -

against serial number 3,-

in column (3), in the heading ‘Description of Service’, in items (iii),(vi),(ix) and (x), for the words “Union territory, a local authority, a Governmental Authority or a Government Entity” the words “Union territory or a local authority” shall be substituted;

in column (3),in the heading ‘Description of Service’, in item (vii), for the words “Union territory, local authority, a Governmental Authority or a Government Entity” the words “Union territory or a local authority” shall be substituted;

in column (5), in the heading ‘Condition’, the entries against items (iii),(vi),(vii),(ix) and (x), shall be omitted;

against serial number 26, in column (3), in the heading ‘Description of Service’, in item (i), in clause (b), after the words, numbers, figures and brackets “Customs Tariff Act, 1975 (51 of 1975)” the words “except services by way of dyeing or printing of the said textile and textile products” shall be inserted.

2. This notification shall come into force with effect from the 1^st day of January, 2022.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: -The principal notification No. 11/2017 - Union Territory Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 702 (E), dated the 28th June, 2017 and last G.S.R. 691(E), dated the 30^th September, 2021.

📚 Frequently Asked Questions (FAQs): Notification No. 15/2021 - Union Territory Tax (Rate)

Q1️⃣: What is Notification No. 15/2021 – Union Territory Tax (Rate)? 🧾

Answer:
This notification modifies the scope of services under Notification No. 11/2017 – UTGST (Rate). It removes certain conditions for government-related services and introduces a clarification on textile processing services, ensuring uniform GST treatment across industries.
👉 For GST expert advice, visit Finodha GST Professionals.

Q2️⃣: When does Notification No. 15/2021 come into effect? 📅

Answer:
The notification takes effect from 1st January 2022, applying to all relevant services under the Union Territory Goods and Services Tax Act, 2017.

Q3️⃣: Which earlier notification has been amended? 🔄

Answer:
It amends Notification No. 11/2017 – Union Territory Tax (Rate) dated 28th June 2017, which prescribes GST rates for services under various categories such as construction, government contracts, and textile processing.

Q4️⃣: What are the key changes made in this notification? ⚙️

Answer:
The major amendments include:
✅ Removing the words “Governmental Authority” and “Government Entity” from multiple entries (S. No. 3, 3A).
✅ Eliminating conditions tied to those service categories.
✅ Inserting a new clarification under S. No. 26 for textile dyeing and printing services — these are now taxable under GST.
(Focus Keyword: Notification No. 15/2021 – Union Territory Tax (Rate), GST textile services, UTGST amendment)

Q5️⃣: What does the amendment mean for government-related services? 🏛️

Answer:
Earlier, services provided to Governmental Authorities or Government Entities enjoyed partial exemptions or concessional rates.
Now, only services provided directly to Union territories or local authorities remain eligible.
This ensures tax uniformity and clarity on what qualifies as a government service under GST.
For more insights, explore GST Compliance Services.

Q6️⃣: How does this affect textile processing services? 🧵

Answer:
The amendment clarifies that dyeing and printing services on textiles or textile products will no longer enjoy exemption.
These services are now subject to standard GST rates, improving transparency in the textile sector.
For textile business compliance, check GST Return Filing.

Q7️⃣: Why did the government introduce this change? 🎯

Answer:
The changes were introduced to:
✅ Align GST rules with the Council’s recommendations.
✅ Prevent misuse of exemptions by semi-government organizations.
✅ Broaden the tax base and improve clarity for service providers.
This move promotes equal competition among private and public sector service providers.

Q8️⃣: How does this affect contractors and service vendors? 🏗️

Answer:
Contractors offering services such as construction, maintenance, or repair to Union territories or local authorities will now follow updated GST classifications.
Those working with Government Entities (like PSU-led organizations) must charge full GST instead of claiming exemptions.
For compliance assistance, visit Setup Business in India.

Q9️⃣: What is the significance of clause insertion in textile services? 🧶

Answer:
Under the new clause, services involving dyeing or printing of textiles are now excluded from exemption under S. No. 26.
This ensures that all value-added processes in textiles attract GST, improving reporting and revenue consistency.
(Focus Keywords: Notification No. 15/2021 – Union Territory Tax (Rate), GST dyeing printing clause)