Notification No. 19/2017 – UTTR Explained

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Notification No. 19/2017 - Union Territory Tax (Rate): Seek to reduce UTGST rate on specified parts of tractors from 14% to 9 %

GST: [TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) 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 amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.1/2017- 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. 710 (E) dated the 28th June, 2017, namely:-

2. In the said notification, in Schedule III – 9%, after serial number 452 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-

(1)	(2)	(3)
“452A	4011 70 00	Tyre for tractors
452B	4013 90 49	Tube for tractor tyres
452C	8408 20 20	Agricultural Diesel Engine of cylinder capacity exceeding 250 cc for Tractor
452D	8413 81 90	Hydraulic Pumps for Tractors
452E	8708 10 10	Bumpers and parts thereof for tractors
452F	8708 30 00	Brakes assembly and its parts thereof for tractors
452G	8708 40 00	Gear boxes and parts thereof for tractors
452H	8708 50 00	Transaxles and its parts thereof for tractors
452I	8708 70 00	Road wheels and parts and accessories thereof for tractors
452J	8708 91 00	Radiator assembly for tractors and parts thereofCooling system for tractor engine and parts thereof
452K	8708 92 00	Silencer assembly for tractors and parts thereof
452L	8708 93 00	Clutch assembly and its parts thereof for tractors
452M	8708 94 00	Steering wheels and its parts thereof for tractor
452N	8708 99 00	Hydraulic and its parts thereof for tractors
452O	8708 99 00	Fender, Hood, wrapper, Grill, Side Panel, Extension Plates, Fuel Tank and parts thereof for tractors”.

(Ruchi Bisht)
Under Secretary to the
Government of India

Note: The principal notification No.1/2017- Union Territory Tax (Rate) dated 28^th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 710 (E), dated the 28^th June, 2017 and last amended vide notification No 18/2017- Union Territory Tax (Rate) dated the 30^th June, 2017 published vide number G.S.R 808 (E) dated the 30^th June, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 19/2017 - Union Territory Tax (Rate)

Q1. What is Notification No. 19/2017-UTT(R)?

Answer: It is a GST rate amendment notification issued on 18 August 2017.
The notification reduced UTGST on specified tractor parts from 14% to 9% by inserting new entries in Schedule III of Notification No. 1/2017-UTT(R).

Q2. What was the main objective of this notification?

Answer: To reduce the tax burden on tractor parts.
The amendment aimed to make tractor maintenance and agricultural mechanization more affordable.

Q3. Did the GST reduction apply to tractors or tractor parts?

Answer: The notification specifically covered tractor parts.
The listed components became taxable at 9% UTGST under the amended schedule.

Q4. Are tractor tyres covered?

Answer: Yes.
Tractor tyres classified under HSN 4011 70 00 were specifically included in the notification.

Q5. Are tractor tubes covered?

Answer: Yes.
Tractor tyre tubes under HSN 4013 90 49 were included in the concessional rate list.

Q6. Are hydraulic pumps covered?

Answer: Yes.
Hydraulic pumps specifically designed for tractors were included among the eligible items.

Q7. Are gearbox assemblies covered?

Answer: Yes.
Gear boxes and related tractor parts were specifically listed in the notification.

Q8. What about brake assemblies?

Answer: Brake assemblies and their parts for tractors are covered.
The notification specifically includes such components within the concessional rate schedule.

Q9. Are radiator assemblies eligible?

Answer: Yes.
Radiator assemblies and cooling system parts for tractor engines were included in the reduced-rate category.

Q10. Are fuel tanks covered under the notification?

Answer: Yes.
Fuel tanks and their related parts for tractors were specifically listed among the eligible items.

Q11. How important is HSN classification?

Answer: Extremely important.
GST rates depend heavily on the correct HSN code and product description. Incorrect classification may lead to tax disputes.

Q12. Can industrial machine parts claim the same benefit?

Answer: Not automatically.
The notification applies only to the tractor parts specifically identified in the schedule.

Conclusion

Notification No. 19/2017-UTT(R) was a targeted GST relief measure aimed at supporting India's agricultural sector. By reducing UTGST on specified tractor parts from 14% to 9%, the government lowered maintenance costs, improved affordability, and encouraged greater agricultural mechanization.

For manufacturers, dealers, and farmers alike, the notification demonstrated how GST policy can be adjusted to support sectors that are critical to the country's economic growth.