Notification No. 24/2017 UTGST Rate Explained

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Notification No. 24/2017 - Union Territory Tax (Rate): Seeks to amend notification No. 11/2017 - UTT(R) to reduce CGST rate on specified supplies of Works Contract Services.

GST: [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 (1) of section 7, sub- section (1) of section 8 and clause (iv) and clause (v) 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 sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council,

and on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.11/2017- 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. 702(E), dated the 28^th June, 2017, namely:-

In the said notification, in the Table, against serial number 3, for item (vi) in column (3) and the entries relating thereto, in columns (3), (4) and (5), the following shall be substituted, namely:-

(3)	(4)	(5)
“(vi) Services provided to the Central Government, State Government, Union Territory, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of – a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; ora residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017.	6	-

(vii) Construction services other than (i), (ii), (iii), (iv), (v) and (vi) above.

-”.

(Ruchi Bisht)
Under Secretary to the
Government of India

Note:-The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 11/2017 – Union Territory (Rate), dated the 28^th June, 2017, vide number G.S.R. 702 (E), dated the 28^th June, 2017 and was last amended by notification No. 20/2017 – Union Territory Tax (Rate) dated the 22^nd August, 2017 vide number G.S.R. 1053 (E), dated the 22^nd August, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 24/2017 - Union Territory Tax (Rate)

Q1. What is Notification No. 24/2017 UTGST Rate?

Answer:
It is a GST notification issued on 21 September 2017 that reduced GST on specified works contract services supplied to Government bodies and governmental authorities.
The amendment modified Notification No. 11/2017-UTT(R).

Q2. What was the main objective of the notification?

Answer:
The notification aimed to reduce GST on public infrastructure and welfare-related projects.
This helped lower project costs for educational, healthcare, cultural, and government residential facilities.

Q3. What GST rate was prescribed?

Answer:
The notification prescribed a UTGST rate of 6% for qualifying works contract services.
Combined with the corresponding CGST rate, the effective GST burden became 12%.

Q4. Which recipients qualify?

Answer:
The benefit applies to:
Central Government
State Government
Union Territory
Local Authority
Governmental Authority
subject to fulfillment of other conditions.

Q5. Do all government contracts qualify?

Answer:
No.
The project must also satisfy the prescribed usage conditions mentioned in the notification.

Q6. Are schools covered?

Answer:
Yes.
Educational establishments are specifically included within the notification's scope.

Q7. Are hospitals covered?

Answer:
Yes.
Clinical establishments are specifically covered under the concessional GST provision.

Q8. What are cultural establishments?

Answer:
These include structures predominantly used for artistic or cultural purposes such as museums and cultural centres.

Q9. Are residential complexes covered?

Answer:
Yes.
Government residential complexes intended for self-use or employee accommodation qualify.

Q10. What is meant by "predominantly"?

Answer:
Predominantly means primarily or mainly.
The principal use of the structure determines eligibility.

Q11. What happens if the project is commercial?

Answer:
Commercial projects generally do not qualify under Entry 3(vi) and may attract higher GST rates.

Q12. Is documentation important?

Answer:
Absolutely.
Proper records are essential to establish eligibility for concessional GST treatment.

Q13. Does this notification affect private real estate projects?

Answer:
Generally no.
The notification focuses on specified government and public welfare projects.

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