Notification No. 24/2019 - Union Territory Tax (Rate) Update

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Notification No. 24/2019 - Union Territory Tax (Rate): Seeks to amend notification No. 07/2019 - Union Territory Tax (Rate), dated the 29th March, 2019 by amending the entry related to cement.

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 (4) 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 in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.07/2019- Union Territory Tax (Rate), dated the 29^th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 266(E), dated the 29^th March, 2019, namely:-

In the said notification, in the Table, against serial number 2, for the entry in column (2), the following entry shall be substituted, namely: -

“Cement falling in chapter heading 2523 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975).”.

2. This notification shall come into force with effect from the 1^st day of October, 2019.

(Ruchi Bisht)
Under Secretary to the
Government of India

Note: -The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 7/2019 - Union Territory Tax (Rate), dated the 29^th March, 2019, vide number G.S.R. 266 (E), dated the 29^th March, 2019.

📚 Frequently Asked Questions (FAQs): Notification No. 24/2019 - Union Territory Tax (Rate)

Q1: What is Notification No. 24/2019 - Union Territory Tax (Rate)?

Answer:
It is a GST notification that clarifies GST treatment of cement supplies under UTGST by replacing the entry to specifically include heading 2523.

Q2: From when is this notification applicable?

Answer:
From 1 October 2019.

Q3: Which goods are covered?

Answer:
All cement products classified under heading 2523, including:
OPC
PPC
White cement
Blended cement

Q4: Does this change GST rate?

Answer:
No new rate is introduced. It clarifies classification, ensuring the correct existing rate applies.

Q5: Who must follow this notification?

Answer:
Cement dealers
Builders
Contractors
Real estate developers
Businesses operating in Union Territories

Q6: Does it affect Input Tax Credit (ITC)?

Answer:
Yes 👍
Clear classification helps you claim correct ITC without disputes.

Q7: How should dealers invoice cement now?

Answer:
Mention:
HSN 2523
Correct GST rate
UTGST + CGST split

Q8: What happens if wrong rate is charged?

Answer:
You may face:
❌ Notices
❌ Interest
❌ Penalties
Hence, compliance is important.

Q9: Is this applicable in States also?

Answer:
This notification is specifically for Union Territories. States follow SGST notifications.

Q10: Does it impact real estate projects?

Answer:
Yes. Cement is a major input. Correct GST ensures:
✔ Proper costing
✔ Correct ITC
✔ Accurate returns

Q11: How does this help government?

Answer:
It reduces:
Tax evasion
Rate disputes
Wrong classification

Q12: Do small traders need to worry?

Answer:
If registered under GST and selling cement → Yes
If not registered → Check turnover threshold first.
Need help?
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