Notification No. 36/2017 – UTTR Explained

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Notification No. 36/2017 - Union Territory Tax (Rate): Seeks to amend notification No. 4/2017 - Union Territory Tax (Rate)

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 (3) 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.4/2017- Union Territory Tax (Rate), dated the 28^th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 713 (E), dated the 28^th June, 2017, namely:-

In the said notification,-

(i) after S. No. 5 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: -

TABLE

Sl. No.	Tariff item, sub- heading, heading or Chapter	Description of Goods	Supplier of goods	Recipient of supply
(1)	(2)	(3)	(4)	(5)
6.	Any Chapter	Used vehicles, seized and confiscated goods, old and used goods, waste and scrap	Central Government, State Government, Union territory or a local authority	Any registered person

(Ruchi Bisht)
Under Secretary to
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 36/2017 - Union Territory Tax (Rate)

Q1: What is Notification No. 36/2017 – UTGST Rate?

Answer:
It is a GST notification introducing reverse charge mechanism on specified goods supplied by Government authorities to registered persons.
The notification amended Notification No. 4/2017-UTT(R).

Q2: Which goods are covered under this notification?

Answer:
The notification covers:
used vehicles,
seized goods,
confiscated goods,
old and used goods,
waste and scrap.

Q3: Who is liable to pay GST under this notification?

Answer:
The registered recipient purchasing such goods becomes liable to pay GST under reverse charge.
The Government authority supplying goods does not bear normal GST payment responsibility here.

Q4: Which suppliers are covered?

Answer:
Suppliers covered include:
Central Government,
State Government,
Union Territory,
local authority.

Q5: Why was reverse charge introduced here?

Answer:
The Government introduced RCM to simplify GST administration for disposal transactions involving Government bodies and local authorities.

Q6: Does this notification apply to Government auctions?

Answer:
Yes, in many cases Government auction sales involving covered goods and registered buyers may attract reverse charge implications.

Q7: Are used vehicles specifically covered?

Answer:
Yes.
Used vehicles are expressly mentioned in the notification.

Q8: What happens if the buyer is not registered?

Answer:
The notification specifically refers to registered recipients.
RCM applicability therefore depends significantly on recipient registration status.

Q9: Does scrap sale by municipality attract GST under RCM?

Answer:
Potentially yes, if:
goods fall under covered categories,
supplier is covered authority,
and recipient is registered.

Q10: Is GST payable on confiscated goods?

Answer:
Confiscated goods supplied by covered Government authorities may attract GST under reverse charge where notification conditions are satisfied.

Q11: Why is classification important under this notification?

Answer:
Because determining whether goods qualify as scrap, old goods, or confiscated goods directly affects GST treatment.

Q12: Is this notification still relevant today?

Answer:
Yes.
It remains important for understanding GST reverse charge treatment on Government disposal transactions.

Q13: What is the biggest compliance risk here?

Answer:
The biggest risks are:
failure to identify RCM applicability,
incorrect classification,
improper GST reporting.

Q14: Should businesses maintain auction records carefully?

Answer:
Absolutely.
Auction notices, invoices, bidder documents, and payment records become important during GST audits.

Q15: Should buyers seek professional GST advice?

Answer:
In many cases, yes.
Government disposal transactions involve classification and reverse charge complexities.
Businesses often seek support through GST Registration Services and professional GST advisory services.