Notification No. 27/2019 - Union Territory Tax (Rate) Update

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Notification No. 27/2019 - Union Territory Tax (Rate): Seeks to further amend notification No. 01/2017-Union Territory Tax (Rate), to change the rate of GST on goods as per recommendations of the GST Council in its 38th Meeting.

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 7 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments 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:-

In the said notification, -

in Schedule II - 6%, serial numbers 80AA and 171A and the entries relating thereto shall be omitted;

in Schedule III - 9%, after serial number 163A and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: -

“163B	3923 or 6305	Woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of a kind used for packing of goods;
163C	6305 32 00	Flexible intermediate bulk containers”.

2. This notification shall come into force on the 1^st day of January, 2020.

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

Note: - The principal notification No.1/2017- Union Territory Tax (Rate), dated the 28th 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 28th June, 2017 and was last amended by notification No. 14/2019- Union territory Tax (Rate) dated the 30^th September, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number GSR 711(E), dated the 30th September, 2019.

📚 Frequently Asked Questions (FAQs): Notification No. 27/2019 - Union Territory Tax (Rate)

Q1: What is Notification No. 27/2019 – Union Territory Tax (Rate)?

Answer:
It is a government notification that increases GST rates on woven sacks and bulk containers by moving them to a higher tax slab.

Q2: From when is this notification applicable?

Answer:
It is effective from 1 January 2020.

Q3: Which goods are covered?

Answer:
Woven/non-woven polyethylene or polypropylene bags
Sacks used for packing goods
Flexible Intermediate Bulk Containers (FIBC/Jumbo bags)

Q4: What is the new GST rate?

Answer:
UTGST 9% + CGST 9% = Total 18% GST

Q5: What was the old GST rate?

Answer:
Previously total GST was 12%.

Q6: Who must update GST invoices?

Answer:
Manufacturers, wholesalers, traders, distributors, exporters — everyone supplying these goods must revise invoices.
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Q7: Is Input Tax Credit (ITC) available?

Answer:
Yes. ITC remains available if you are registered and compliant.

Q8: Are these goods exempt for MSMEs?

Answer:
No special exemption. Normal GST applies. However, MSMEs can register under:
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Q9: Does this affect exporters?

Answer:
Yes. Exporters must pay GST and claim refund or use LUT.

Q10: Does this apply in Union Territories only?

Answer:
Yes for UTGST. Similar CGST/IGST notifications apply across India.

Q11: How to classify these goods correctly?

Answer:
Use HSN codes:
3923
6305
6305 32 00
Incorrect HSN may cause penalties.

Q12: Can wrong GST rate cause notices?

Answer:
Yes. Under-charging GST may lead to:
Demand notices
Interest
Penalty
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Q13: Is registration mandatory for small sellers?

Answer:
If turnover exceeds threshold, yes.
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Q14: What if I already paid GST at old rate after Jan 2020?

Answer:
You must:
Issue debit note
Pay differential tax
Report in returns

Q15: Can Finodha help with GST changes?

Answer:
Absolutely 😊
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