Notification No. 28/2019 - Union Territory Tax (Rate) Update

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Notification No. 28/2019 - Union Territory Tax (Rate): To amend notification No. 12/ 2017- Union Territory Tax (Rate) so as to exempt certain services as recommended by GST Council in its 38th meeting held on 18.12.2019.

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 (3) and sub-section (4) of section 7, sub-section (1) of section 8, and clause (iv) and clause (xxvii) 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 section 148 of the Central Goods and Services Tax Act, 2017 (12 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 further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.12/2017- 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. 703 (E), dated the 28th June, 2017, namely:-

In the said notification, in the Table, against serial number 41, -

in column (3), for the figure “50”, at both the places where they occur, the figure “20 ” shall be substituted;

for the entry in column (5), the following entries shall be substituted, namely, -

(5)

“Provided that the leased plots shall be used for the purpose for which they are allotted, that is, for industrial or financial activity in an industrial or financial business area: Provided further that the State Government concerned shall monitor and enforce the above condition as per the order issued by the State Government in this regard: Provided also that in case of any violation or subsequent change of land use, due to any reason whatsoever, the original lessor, original lessee as well as any subsequent lessee or buyer or owner shall be jointly and severally liable to pay such amount of Union territory tax, as would have been payable on the upfront amount charged for the long term lease of the plots but for the exemption contained herein, along with the applicable interest and penalty: Provided also that the lease agreement entered into by the original lessor with the original lessee or subsequent lessee, or sub- lessee, as well as any subsequent lease or sale agreements, for lease or sale of such plots to subsequent lessees or buyers or owners shall incorporate in the terms and conditions, the fact that the Union territory tax was exempted on the long term lease of the plots by the original lessor to the original lessee subject to above condition and that the parties to the said agreements undertake to comply with the same.”.

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

(Ruchi Bisht)
Under Secretary to the
Government of India

Note: -The principal notification No. 12/2017 - Union Territory Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 703 (E), dated the 28^th June, 2017 and was last amended by notification No. 21/2019 - Union Territory Tax (Rate), dated the 30^th September, 2019 vide number G.S.R. 735 (E), dated the 30^th September, 2019.

📚 Frequently Asked Questions (FAQs): Notification No. 28/2019 - Union Territory Tax (Rate)

Q1: What is Notification No. 28/2019 – Union Territory Tax (Rate)?

Answer:
It amends the earlier exemption notification and provides GST exemption on long-term lease of plots for industrial/financial use in Union Territories.