Notification No. 16/2019 - Union Territory Tax (Rate) Update

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Notification No. 16/2019 - Union Territory Tax (Rate): Seeks to amend notification No 3/2017- Union territory Tax (Rate) dated 28.6.2017 so as to extend concessional UTGST rates to specified projects under HELP/OALP, and other changes.

[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-section (1) of section 8 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 amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.3/2017-Union Territory Tax (Rate), dated the 28th June, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 712(E) dated the 28^th June, 2017, namely: -

In the said notification, -

in the TABLE, against S. No. 1, in column (3), after item (5), the following item shall be inserted, namely: -
“(6) Petroleum operations or coal bed methane operations undertaken under specified contracts under the Hydrocarbon Exploration Licensing Policy (HELP) or Open Acreage Licensing Policy (OALP)”;

in the ANNEXURE, against Condition No. 1, in clause (e), the following proviso shall be inserted, namely: -

“Provided that where the said goods so supplied are sought to be disposed of in non- serviceable form, after mutilation, the recipient of outward supply or the transferee, as the case may be, may at his option, pay the tax at the rate of 9 per cent. on transaction value of such goods subject to the condition that the recipient of outward supply or the transferee,

As the case may be, produces before the Deputy Commissioner of Central tax or the Assistant Commissioner of Central tax or the Deputy Commissioner of State tax or the Assistant Commissioner of State tax, as the case may be, having jurisdiction over the supplier of goods, a certificate from a duly authorized officer of the Directorate General of Hydro Carbons in the Ministry of Petroleum and Natural Gas, Government of India, to the effect that the said goods are non-serviceable and have been mutilated before disposal.”.

2. This notification shall come into force on the 1^st day of October, 2019.

(Ruchi Bisht)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 16/2019 - Union Territory Tax (Rate)

Q1: What is Notification No. 16/2019 - Union Territory Tax (Rate)?

Answer:
It provides concessional UTGST rates for goods supplied to petroleum and coal bed methane operations under HELP/OALP contracts.

Q2: From when is this rule effective?

Answer:
From 1 October 2019.

Q3: Who gets benefit under this notification?

Answer:
Oil & gas exploration companies
HELP contractors
OALP contractors
Coal bed methane operators

Q4: What are HELP and OALP?

Answer:
Government policies allowing companies to explore oil and gas blocks through bidding.

Q5: Which goods get concessional rate?

Answer:
Goods used directly in:
Drilling
Extraction
Production
Petroleum operations

Q6: Do I need GST registration to claim benefit?

Answer:
✅ Yes. Only registered taxpayers can claim.
👉 Register here: https://finodha.in/online-gst-registration/

Q7: What happens to old/damaged equipment?

Answer:
You can:
Mutilate goods
Dispose as scrap
Pay 9% GST
Provide DGH certificate

Q8: Why is certificate required?

Answer:
To confirm goods are non-serviceable and prevent misuse of concessional tax.

Q9: Is Input Tax Credit allowed?

Answer:
Yes 👍
Normal ITC rules apply.

Q10: Do I still need monthly GST returns?

Answer:
Yes. File:
GSTR-1
GSTR-3B
Annual return
👉 https://finodha.in/gst-compliance/

Q11: Can subcontractors claim benefit?

Answer:
Yes, if supply relates directly to eligible projects and conditions are met.

Q12: What if goods are used for other purposes?

Answer:
Normal GST applies. Concession only for specified operations.

Q13: What documents should I maintain?

Answer:
Contract copy
Project approval
Invoice
DGH certificate (if scrap disposal)
GST returns

Q14: How can businesses manage compliance easily?

Answer:
Use professional support:
GST filing
Compliance
Company setup
DSC
Helpful services:
GST Filing: https://finodha.in/gst-return-filing/
Setup Business: https://finodha.in/setup-business/
DSC: https://finodha.in/online-dsc-digital-signature-certificate/

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