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Notification No. 16/2021 – UTTR GST E-commerce

by Shakshi Bharti | Feb 17, 2024 | GST, 2021 Notifications, Notifications, Union Territory Tax (Rate) 2021 Notifications | 0 comments

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Words: 1228; Read time: 6 minutes.

[F. No. 354/207/2021-TRU]
Government of India
Ministry of Finance
(Department of Revenue)

New Delhi, 18^th November, 2021.

Notification No. 16/2021 – Union territory Tax (Rate): Seeks to amend Notification No 12/2017- 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 (3) and (4) of section 7, sub-section (1) of section 8 and clause (iv) 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 and section 148 of the Central Goods and Services Tax Act, 2017 (12 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 amendments further to amend the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.12/2017- 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. 703 (E), dated the 28th June, 2017, namely:-

In the said notification, in the TABLE, -

against serial number 3, in column (3), in the heading “ Description of Services” , the words “or a Governmental authority or a Government Entity” shall be omitted;
against serial number 3A, in column (3), in the heading “ Description of Services” ,the words “or a Governmental authority or a Government Entity” shall be omitted;

against serial number 15, in column (3), in the heading “ Description of Services” , after item (c), the following shall be inserted, namely, -
“Provided that nothing contained in items (b) and (c) above shall apply to services supplied through an electronic commerce operator, and notified under sub-section (5) of Section 7 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017).”;
against serial number 17, in column (3), in the heading “ Description of Services” ,after item (e), the following shall be inserted, namely, -
“Provided that nothing contained in item (e) above shall apply to services supplied through an electronic commerce operator, and notified under sub-section (5) of Section 7 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017).”

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

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: -The principal notification No. 12/2017 - Union Territory Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 703 (E), dated the 28^th June, 2017 and last amended by notification No. 07/2021 – Union Territory Tax (Rate), dated the 30^th September, 2021 vide number G.S.R. 692(E), dated the 30^th September, 2021.

📚 Frequently Asked Questions (FAQs): Notification No. 16/2021 - Union Territory Tax (Rate)

Q1️⃣: What is Notification No. 16/2021 – Union Territory Tax (Rate)? 🧾

Answer:
This notification amends Notification No. 12/2017 – UTGST (Rate) by:
✅ Removing the terms “Governmental Authority” and “Government Entity” from certain service exemptions, and
✅ Clarifying that specific services provided through e-commerce operators will no longer enjoy GST exemption.
👉 For GST consultation, visit Finodha GST Experts.

Q2️⃣: When did this notification come into effect? 📅

Answer:
The notification took effect from 1st January 2022, marking a significant change for both e-commerce operators and service providers in the Union Territories.

Q3️⃣: Which earlier notification was amended? 🔄

Answer:
It amends Notification No. 12/2017 – Union Territory Tax (Rate), which lists services exempted from GST under the UTGST Act. The amendment ensures that digital and platform-based services are taxed fairly.

Q4️⃣: What are the key amendments introduced? ⚙️

Answer:
The main changes include:
Deletion of “Governmental authority or Government Entity” from S. No. 3 and 3A (related to pure services and composite supplies).
Addition of a proviso under S. No. 15 and 17, specifying that services provided through e-commerce operators will not be exempt.
This brings uniformity across digital, private, and public service providers.
(Focus Keywords: Notification No. 16/2021 – Union Territory Tax (Rate), GST e-commerce operator amendment)

Q5️⃣: Why did the government issue this amendment? 🎯

Answer:
The amendment ensures:
✅ Level playing field between physical and online service providers.
✅ Elimination of exemptions for certain digital platforms that were earlier misused.
✅ Updated legal framework aligning with the growth of e-commerce and digital services in India.
For tax guidance, explore GST Compliance Services.

Q6️⃣: Which services are affected by this change? 💼

Answer:
Affected categories include:
Pure services related to government functions (earlier exempt).
Restaurant and passenger transport services provided via e-commerce operators such as Swiggy, Zomato, and Ola.
These services will now attract applicable GST.
To register your business, visit Online GST Registration.

Q7️⃣: What is the significance of “Electronic Commerce Operator” in this context? 💻

Answer:
An Electronic Commerce Operator (ECO) refers to platforms like Swiggy, Uber, Zomato, Amazon, or Ola that facilitate transactions between buyers and sellers.
This notification clarifies that such platforms must collect and remit GST on behalf of the service providers operating through them.
For smooth filing, explore GST Return Filing.

Q8️⃣: What does the removal of “Government Entity” from exemptions imply? 🏛️

Answer:
Earlier, services provided to or by Governmental Authorities or Government Entities were exempt.
Now, such exemptions are restricted only to “Central Government” and “State Government”, ensuring that semi-government or public corporations also pay GST when applicable.
(Focus Keywords: Notification No. 16/2021 – Union Territory Tax (Rate), Government entity GST change)

Q9️⃣: How does this impact small e-commerce sellers and restaurants? 🍽️📱

Answer:
Small restaurants listed on apps like Zomato or Swiggy will now be under mandatory GST compliance.
E-commerce operators must collect GST at source, simplifying reporting for sellers.
Sellers should maintain updated HSN and SAC codes for accurate tax filing.
To stay compliant, visit Setup Business in India or MSME Registration.