Important Keyword: Notification 39/2017 UTGST Rate, concessional GST food distribution, GST on welfare food supplies, GST food preparations unit containers, Government welfare GST concession, GST economically weaker sections, food preparation GST India, Chapter 19 GST goods, Chapter 21 GST food products, GST concessional rate welfare schemes,
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Table of Contents
[F.No.354/117/2017- TRU (Pt.III)]
Government of India
Ministry of Finance
Department of Revenue
New Delhi, the 18th October, 2017
Notification No. 39/2017 - Union Territory Tax (Rate): Seeks to reduce GST rate on Food preparations put up in unit containers and intended for free distribution to economically weaker sections of the society under a programme duly approved by the Central Government or any State Government.
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), the Central Government, on the recommendations of the Council, hereby notifies the Union territory tax rate of 2.5 per cent on intra-State supplies of goods, the description of which is specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2), subject to the condition specified in column (4) of the Table below, namely:-
Table
| Sl. No. | Tariff item, sub- heading, heading or Chapter | Description of Goods | Condition |
| (1) | (2) | (3) | (4) |
| 1. | 19 or 21 | Food preparations put up in unit containers and intended for free distribution to economically weaker sections of the society under a programme duly approved by the Central Government or any State Government. | When the supplier of such food preparations produces a certificate from an officer not below the rank of the Deputy Secretary to the Government of India or the Deputy Secretary in the Union Territory concerned to the effect that such food preparations have been distributed free to the economically weaker sections of the society under a programme duly approved by the Central Government, or any State Government within a period of five months from the date of supply of such goods or within such further period as the jurisdictional commissioner of the Central tax or jurisdictional officer of the Union Territory Tax, as the case maybe, may allow in this regard. |
Explanation. –
- In this notification, “tariff item”, “sub-heading” “heading” and “Chapter” shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
- The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.
(Mohit Tewari)
Under Secretary to the
Government of India.
📚 Frequently Asked Questions (FAQs): Notification No. 39/2017 - Union Territory Tax (Rate)
Q1: What is Notification No. 39/2017 – UTGST Rate?
Answer:
It is a GST notification prescribing concessional UTGST rate of 2.5% on specified food preparations supplied for free distribution under approved Government welfare programmes.
The notification supports food distribution for economically weaker sections.
Q2: Which goods are covered under this notification?
Answer:
Food preparations classified under Chapters 19 or 21 and supplied in unit containers are covered.
These goods must be intended for free welfare distribution.
Q3: What is the concessional GST rate?
Answer:
The notification prescribes UTGST rate of 2.5%.
Combined with CGST, effective GST generally becomes 5%.
Q4: Who are the intended beneficiaries?
Answer:
The benefit is intended for economically weaker sections of society receiving free food supplies under approved Government programmes.
Q5: Is Government approval compulsory?
Answer:
Yes.
The welfare programme must be duly approved by the Central Government or State Government.
Q6: Can commercial food sales use this concessional rate?
Answer:
No.
The concession applies only to free distribution under welfare schemes, not regular commercial retail sales.
Q7: What certificate is required?
Answer:
A certificate from an officer not below the rank of Deputy Secretary is required.
The certificate must confirm free distribution under approved programme.
Q8: What is the timeline for certificate submission?
Answer:
The certificate must generally be produced within five months from date of supply.
Authorities may allow additional time in certain cases.
Q9: Why is HSN classification important here?
Answer:
The notification applies specifically to goods under Chapters 19 and 21.
Incorrect classification may lead to denial of concessional benefit.
Q10: Does packaging matter under this notification?
Answer:
Yes.
The goods must be supplied in unit containers to qualify under this notification.
Q12: Why did the Government introduce this notification?
Answer:
The objective was to reduce tax burden on welfare food programmes and support economically weaker sections through lower procurement costs.
Q13: Is this notification still relevant today?
Answer:
Yes.
It remains important for understanding welfare-based concessional GST structures and Government-supported supply schemes.
Q14: Can NGOs directly claim this benefit?
Answer:
Only if supplies satisfy all notification conditions, including approved programme requirement and certification conditions.
NGO involvement alone may not be sufficient.
Q15: Should suppliers maintain long-term records?
Answer:
Absolutely.
GST authorities may verify programme eligibility, certificates, invoices, and distribution proof during audits.
Businesses unsure about GST applicability often seek support through GST Registration Services and professional GST advisory services.
Conclusion
Notification No. 39/2017 – UTGST Rate is an important welfare-oriented GST notification introduced during the early GST phase.
The notification reduced GST burden on food preparations supplied under Government welfare programmes for economically weaker sections.
But practically, the scheme works only when:
- programme approval exists,
- free distribution is genuine,
- certificates are properly maintained,
- documentation is complete.
This notification clearly shows how GST policy is sometimes used not only for taxation, but also for social welfare support.
Download PDF: Notification No. 39/2017 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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