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[F. No.354/221/2017 -TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 29th September, 2017
Notification No. 30/2017 - Union Territory Tax (Rate): Exempting supply of services associated with transit cargo to Nepal and Bhutan.
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 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 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 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)vide number G.S.R. 703(E), dated the 28thJune, 2017, namely:-
In the said notification, in the Table, after serial number 9A and the entries relating thereto, the following shall be inserted, namely:-
| (1) | (2) | (3) | (4) | (5) |
| “9B | Chapter 99 | Supply of services associated with transit cargo to Nepal and Bhutan (landlocked countries). | Nil | Nil”. |
(Ruchi Bisht)
Under Secretary to the
Government of India
Note:-The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 12/2017 - Central Tax (Rate), dated the 28th June, 2017, vide number G.S.R. 703(E), dated the 28th June, 2017 and was last amended by notification No.25/2017-Union Territory Tax (Rate),dated the 21st September, 2017 vide number G.S.R. 1186 (E).dated the 21st September, 2017.
📚 Frequently Asked Questions (FAQs): Notification No. 30/2017 - Union Territory Tax (Rate)
Q1. What is Notification No. 30/2017 – UTGST Rate?
Answer:
It is a GST exemption notification issued on 29 September 2017.
The notification exempts services associated with transit cargo destined for Nepal and Bhutan by inserting Entry 9B in Notification No. 12/2017-UTT(R).
Q2. Which countries are covered under this notification?
Answer:
The exemption specifically applies to Nepal and Bhutan.
The notification identifies these countries as landlocked nations whose cargo frequently moves through India.
Q3. What GST rate applies under this notification?
Answer:
The applicable GST rate is Nil.
This means qualifying services associated with transit cargo are fully exempt from GST.
Q4. What is transit cargo?
Answer:
Transit cargo refers to goods passing through one country while being transported to another destination country.
In this notification, the cargo is moving through India but is intended for Nepal or Bhutan.
Q5. Does the exemption apply to transportation services?
Answer:
It may apply where transportation services are directly associated with eligible transit cargo.
The actual applicability depends on the facts and supporting documentation.
Q6. Is GST registration required to claim this exemption?
Answer:
GST registration requirements depend on overall GST provisions.
The exemption itself does not automatically eliminate registration obligations.
Q7. Do freight forwarders benefit from this notification?
Answer:
Yes, freight forwarders involved in eligible transit cargo movements may be affected by the exemption.
Proper documentation remains essential.
Q8. Does this exemption cover exports from India?
Answer:
No, the notification specifically relates to transit cargo destined for Nepal and Bhutan.
Exports from India are governed by separate GST provisions.
Q9. Why were Nepal and Bhutan specifically mentioned?
Answer:
Both countries are landlocked and depend significantly on Indian transport infrastructure for international trade.
The exemption helps facilitate that movement.
Q10. What documents should businesses maintain?
Answer:
Businesses should preserve:
Transit declarations
Customs documents
Transport records
Shipment details
Destination evidence
These records support exemption claims.
Q11. Is this exemption still relevant today?
Answer:
Yes, it remains an important reference point for GST treatment of transit cargo services unless modified by subsequent amendments.
Businesses should always verify current legal status.
Q12. Can GST officers ask for proof?
Answer:
Yes.
Businesses claiming exemptions should be prepared to demonstrate that services are genuinely associated with eligible transit cargo.
Q13. Does the exemption apply automatically?
Answer:
No.
Businesses must ensure all conditions and factual requirements are satisfied before claiming exemption.
Q14. What is the biggest compliance risk?
Answer:
The biggest risk is inadequate documentation linking the service to transit cargo destined for Nepal or Bhutan.
Without evidence, exemption claims may be challenged.
Download PDF: Notification No. 30/2017 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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