Notification No. 22/2018 - UTGST Explained

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Notification No. 22/2018 – Union Territory Tax (Rate): Seeks to exempt payment of tax under section 7(4) of the UT GST Act, 2017 till 30.09.2019.

GST: [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 being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2017 –Union Territory Tax (Rate), dated the 28^th June, 2017, published in the Gazette of India,

Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 717 (E), dated the 28^th June, 2017, and last amended vide notification No. 12/2018- Union Territory Tax (Rate), dated the 29^th June, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 596 (E), dated the 29^th June, 2018, namely:-

In the said notification, for the figures, letters and words “30^th day of September, 2018”, the figures, letters and words “30^th day of September, 2019” shall be substituted.

(Dr. Sree Parvathy S.L)
Under Secretary to the
Government of India

Note: - The principal notification No. 8/2017-Union Territory Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i) vide number G.S.R. 717 (E), dated the 28^thJune, 2017 and last amended vide 10/2018- Union Territory Tax (Rate), dated the 29^th June, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 596 (E), dated the 29^th June, 2018.

📚 Frequently Asked Questions (FAQs): Notification No. 22/2018 – Union Territory Tax (Rate)

Q1: What is Notification No. 22/2018 - Union Territory Tax (Rate)?

Answer:
It extends exemption from payment of tax under Section 7(4) of UTGST Act till 30 September 2019. 22

Q2: What does Section 7(4) relate to?

Answer:
It relates to GST liability on purchases from unregistered suppliers under reverse charge mechanism.

Q3: What was the earlier deadline?

Answer:
30 September 2018, which was extended to 30 September 2019. 22

Q4: Does this apply to all RCM cases?

Answer:
No. It applies only to RCM under Section 7(4), not Section 9(3) specified services.

Q5: Does this apply in Delhi?

Answer:
No. It applies to Union Territories without legislature.

Q6: Do businesses need to file GST returns during exemption?

Answer:
Yes. Return filing remains mandatory.
👉 Start filing here:
https://finodha.in/gst-return-filing/

Q7: Is GST registration still required?

Answer:
Yes. Registration requirement remains unchanged.
👉 Apply here:
https://finodha.in/online-gst-registration/

Q8: What happens after 30 September 2019?

Answer:
Government may further extend, modify, or withdraw exemption through new notification.

Q9: Can ITC be claimed during exemption?

Answer:
Since no tax is paid under RCM during exemption, ITC on such transactions does not arise.

Q10: Does this benefit MSMEs?

Answer:
Yes. It reduced compliance burden for small businesses purchasing locally.
👉 Register as MSME:
https://finodha.in/online-udyam-udyog-aadhar-msme-registration/

Q11: Is this amendment permanent?

Answer:
No. It was time-bound till 30.09.2019. 22

Q12: Was GST Council involved?

Answer:
Yes. Notification was issued on recommendation of the Council. 22

Q13: What if tax was wrongly paid under RCM during exemption period?

Answer:
Taxpayer may adjust in returns or claim refund as per GST provisions.

Q14: Does this reduce compliance cost?

Answer:
Yes. It reduced paperwork and accounting burden significantly.

Q15: How can Finodha assist?

Answer:
Finodha helps with:
GST Compliance
https://finodha.in/gst-compliance/
GST Registration
https://finodha.in/online-gst-registration/
Return Filing
https://finodha.in/gst-return-filing/
Business Setup
https://finodha.in/setup-business/
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