Notification No. 26/2018 – UTGST Explained

Important Keyword: Notification 26/2018 UTGST gold exemption, UTGST gold export exemption, Nominated Agency gold GST, jewellery export GST UTGST, Foreign Trade Policy gold exemption, UTGST amendment 2019,

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[F. No.354/432/2018 -TRU]
Government of India
Ministry of Finance
(Department of Revenue)`

New Delhi, the 31^st December, 2018

Notification No. 26/2018 - Union Territory Tax (Rate): Seeks to exempt Union Territory tax on supply of gold by nominated agencies to registered persons.

[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 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 exempts the intra-State supply of gold falling in heading 7108 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when supplied by Nominated Agency under the scheme for "Export Against Supply by Nominated Agency" as referred to in paragraph 4.41 of the Foreign Trade Policy, read with relevant provisions of Chapter 4 of Handbook of Procedures, to registered person (herein referred to as “recipient”), from the whole of the Union territory tax leviable thereon, under section 7 of the Union territory Goods and Services Tax Act, 2017, subject to following conditions, namely:-

• the Nominated Agency and the recipient shall follow the conditions and observe the procedures as specified in the Foreign Trade Policy read with Handbook of Procedures;
• the recipient shall export the jewellery made out of such gold within a period of 90 (ninety) days from the date of supply of gold to such recipient and shall provide copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number (GSTIN) alongwith the invoice for exports to the Nominated Agency within a period of 120 (one hundred and twenty) days from the date of supply by the Nominated Agency;
• wherever such proof of export is not produced within the period mentioned in condition (ii), the Nominated Agency shall pay the amount of Union territory tax payable on the quantity of gold not exported, along with interest from the date when the said tax on such supply was payable, but for the exemption.
  Explanation. - For the purpose of this notification, -
• "Foreign Trade Policy " means the Foreign Trade Policy, 2015-2020, notified by the Government of India in the Ministry of Commerce and Industry vide notification No.41/2015-2020, dated the 5^th December, 2017, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-Section (ii) vide S.O. 3813, dated the 5^th December, 2017;
• "Handbook of Procedures" means the Handbook of Procedure, notified by the Government of India in the Ministry of Commerce and Industry vide Public Notice No. 43/2015-2020, dated the 5^th December 2017, published in the Gazette of India, Extraordinary, Part-I, Section 1, vide F. No. 01/94/180/333/AM 15/PC-4, dated the 5^th December 2017;
• "Nominated Agency" means entities mentioned in List 32 of Notification No. 50/2017-Customs, dated the 30^th June 2017 published Gazette of India, Extraordinary, Part-II, Section 3 sub-section (i),vide, number G. S. R. 785 (E), dated the 30th June, 2017;
• “Heading” means heading as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)

2.         This notification shall come into force on the 1^st January, 2019.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

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📚 Frequently Asked Questions (FAQs): Notification No. 26/2018 – Union Territory Tax (Rate)

🚀 Conclusion

Notification No. 26/2018 - Union Territory Tax (Rate) plays a major role in boosting jewellery exports from Union Territories by:

• Removing UTGST burden on gold supply
• Ensuring time-bound export discipline
• Aligning GST with Foreign Trade Policy

However, strict compliance with 90-day and 120-day rules is essential to avoid tax liability.

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Download PDF: Notification No. 26/2018 – Union Territory Tax (Rate)

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More Information: https://taxinformation.cbic.gov.in/

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