Important Keyword: Notification No. 17/2021 – Union Territory Tax (Rate), GST restaurant service, UTGST amendment, CBIC GST update 2021, Notification No. 17/2021 – Union Territory Tax (Rate), UTGST amendment 2021, GST restaurant tax, CBIC UTGST 2022, GST motor vehicle definition, Finodha GST experts, GST hotel tariff ₹7500,
Words: 1211; Read time: 6 minutes.
Table of Contents
[F. No. 354/207/2021-TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, 18th November, 2021
Notification No. 17/2021 - Union territory Tax (Rate): Seeks to amend Notification No 17/2017- Union territory Tax (Rate) dated 28.06.2017.
[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 (5) 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 amendments further to amend the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.17/2017- 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. 708(E) dated the 28th June, 2017, namely:-
- In the notification,-
- in clause (i), for the words “and motor cycle;”, the words “, motor cycle, omnibus or any other motor vehicle;” shall be substituted;
- after clause (iii), the following clause shall be inserted, namely:-
“(iv) supply of restaurant service other than the services supplied by restaurant, eating joints etc. located at specified premises.”
- In the said notification, in Explanation, -
- in item (b), for the words, brackets, numbers and figures “and “motor cycle” shall have the same meanings as assigned to them respectively in clauses (22), (25) and (26) of section 2 of the Motor Vehicle Act, 1988 (59 of 1988).”, the words, brackets, numbers and figures ,“, motor cycle, motor vehicle and omnibus shall have the same meanings as assigned to them respectively in clauses (22), (25), (27), (28) and (29) of section 2 of the Motor Vehicle Act, 1988 (59 of 1988).” shall be substituted;
- after item (b), the following shall be inserted namely, -
“(c) specified premises means premises providing hotel accommodation services having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent.”
2. This notification shall come into force with effect from the 1st day of January, 2022.
(Rajeev Ranjan)
Under Secretary to the Government of India
Note:- The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 17/2017 - Integrated Tax (Rate), dated the 28th June, 2017, vide number G.S.R. 708 (E), dated the 28th June, 2017 and last amended by notification No. 23/2017 – Union Territory Tax (Rate), dated the 22nd August, 2017 vide number G.S.R. 1056(E), dated the 22nd August, 2017.
📚 Frequently Asked Questions (FAQs): Notification No. 17/2021 - Union Territory Tax (Rate)
Q1️⃣: What is Notification No. 17/2021 – Union Territory Tax (Rate)? 🧾
Answer:
This notification updates Notification No. 17/2017 – UTGST (Rate) by expanding the meaning of motor vehicles and including restaurant services in the tax structure.
It ensures that services such as vehicle leasing and restaurant supplies in high-tariff premises fall under the UTGST framework for uniform taxation.
👉 For expert GST advice, visit Finodha GST Professionals.
Q2️⃣: When did this notification come into effect? 📅
Answer:
The notification came into effect on 1st January 2022, as part of the year-end harmonization of GST notifications across Central, State, and Union Territory jurisdictions.
Q3️⃣: Which earlier notification has been amended? 🔄
Answer:
Notification No. 17/2021 – UTGST (Rate) amends the earlier Notification No. 17/2017 – Union Territory Tax (Rate) dated 28th June 2017, originally defining certain GST-exempt or specific taxable services under the UTGST Act, 2017.
Q4️⃣: What major changes were introduced by this amendment? ⚙️
Answer:
This notification makes two major updates:
✅ Expands “motor vehicle” definition to include motorcycle, omnibus, or any other motor vehicle.
✅ Adds restaurant service, excluding those located at specified high-tariff premises.
This helps differentiate between standard and luxury restaurant services for tax purposes.
Q5️⃣: What does ‘specified premises’ mean in this notification? 🏨
Answer:
As per the explanation, “specified premises” refer to:
Hotels or accommodations where the declared tariff for any unit exceeds ₹7,500 per night.
Restaurants or eateries located in such luxury premises will not qualify for concessional tax treatment and are subject to regular GST rates.
For registration and compliance, visit Online GST Registration.
Q6️⃣: How does this notification affect the restaurant industry? 🍴
Answer:
Restaurants outside luxury hotels continue to enjoy concessional GST treatment.
Restaurants inside hotels or premises with tariffs above ₹7,500 are taxed at higher rates.
This ensures parity between luxury and standalone restaurants under GST.
To ensure proper filing, use GST Return Filing Services.
Q7️⃣: What new vehicle-related changes were introduced? 🚗
Answer:
The amendment extends coverage to:
Motorcycles,
Omnibus, and
Any other motor vehicle,
broadening the tax scope for leasing, renting, and related services under the UTGST Act, 2017.
These definitions now align with the Motor Vehicles Act, 1988 to avoid ambiguity.
Q8️⃣: What sections of law empower this notification? ⚖️
Answer:
It is issued under Section 7(5) of the Union Territory Goods and Services Tax Act, 2017, which allows the Central Government to modify the tax rate or scope of taxable supplies upon the recommendation of the GST Council.
(Focus Keywords: Notification No. 17/2021 – Union Territory Tax (Rate), Section 7(5) UTGST).
Q9️⃣: How does this benefit taxpayers and compliance systems? 💼
Answer:
✅ Reduces ambiguity in taxation of restaurant and vehicle-related services.
✅ Aligns UTGST with CGST/SGST amendments for nationwide consistency.
✅ Simplifies rate classification for hotel and transport businesses.
To stay compliant, explore GST Compliance Services or Setup Business in India.
Q🔟: Where can businesses get professional help to understand these GST changes? 💡
Answer:
Businesses can consult Finodha GST Experts for:
🧾 GST Registration
💡 GST Compliance
📈 Private Limited Company Registration
💻 Digital Signature Certificate (DSC)
🏢 One Person Company (OPC) Registration
📘 Summary
Notification No. 17/2021 – Union Territory Tax (Rate) updates the UTGST framework by expanding vehicle-related tax definitions and introducing new GST provisions for restaurant services.
Effective 1st January 2022, it distinguishes between regular and luxury hospitality units, ensuring fair taxation and clarity for taxpayers.
For complete GST support, visit:
Download PDF: Notification No. 17/2021 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
Read more interesting articles:
