Claim your TDS Refund before it EXPIRE in

Day(s)

Hour(s)

Minute(s)

Second(s)

ITR Filing Starts Only

GST Return Filing Starts Only

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 42/2017 – UTTR Explained

by Shakshi Bharti | May 27, 2024 | GST, 2017 Notifications, Notifications, Union Territory Tax (Rate) 2017 Notifications | 0 comments

Call @ +91-8512-022-044

Important Keyword: Notification 42/2017 UTGST Rate, GST exemption branded goods, GST exemption food products India, makhana GST exemption, jaggery GST exemption, frozen vegetable GST India, branded vs unbranded GST, Notification 2/2017 UTT Rate, GST exemption agricultural products, GST packaging rules India,

Words: 2002 Read time: 11 minutes.

[F.No.354/320/2017-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

New Delhi, the 14^th November, 2017

Notification No. 42/2017 - Union territory Tax (Rate): Seeks to amend notification no. 2/2017- Union Territory tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions

GST: [TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 8 of the UTGST Act, 2017 (14 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, 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.2/2017-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. 711(E), dated the 28th June, 2017, namely:-

In the said notification, -

in the Schedule,
- for S. Nos. 8 and 9 and the entries relating thereto, the following shall be substituted, namely: -

“8	0203, 0204, 0205, 0206, 0207, 0208, 0209	All goods, fresh or chilled
9	0202, 0203, 0204, 0205, 0206, 0207, 0208, 0209, 0210	All goods [other than fresh or chilled] other than those put up in unit container and, - bearing a registered brand name; orbearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to the conditions as in the ANNEXURE I ]”;

GST

S. Nos. 10,11,12,13,14,15,16,17 and the entries thereof shall be omitted;
- for S. Nos. 21 and 22 and the entries relating thereto, the following shall be substituted, namely: -

“21	0304, 0306, 0307, 0308	All goods, fresh or chilled
22	0303, 0304, 0305, 0306, 0307, 0308	All goods [other than fresh or chilled] and other than those put up in unit container and, - bearing a registered brand name; orbearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to the conditions as in the ANNEXURE I ]” ;

GST

S. Nos. 23,24 and the entries thereof shall be omitted;
- after S. No. 30 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: -

“30A	0504	All goods, fresh or chilled
30B	0504	All goods [other than fresh or chilled] other than those put up in unit container and, - bearing a registered brand name; orbearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to the conditions as in the ANNEXURE I ]” ;

GST

after S. No. 43 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: -

“43A

0710

Vegetables (uncooked or cooked by steaming or boiling in water), frozen, other than those put up in unit container and, - bearing a registered brand name; orbearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to the conditions as in the ANNEXURE I]” ;

GST

in S. No. 46, in column (3), for the words “fresh or chilled” the words “fresh or chilled, dried” shall be substituted;

after S. No. 46 and the entries relating thereto, the following serial numbers and the entries shall be inserted, namely: -

“46A	0714	Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, frozen, whether or not sliced or in the form of pellets other than those put up in unit container and, - bearing a registered brand name; orbearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to the conditions as in the ANNEXURE I]
46B	08	Dried makhana, whether or not shelled or peeled [other than those put up in unit container and,- bearing a registered brand name; orbearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to the conditions as in the ANNEXURE I]”;

GST

in S. No. 77, in the entry in column (3), for the words “Flour of potatoes” the words “Flour, powder, flakes, granules or pellets of potatoes”, shall be substituted;

after S. No. 78 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: -

“78A

1106 10 10

Guar meal” ;

GST

after S. No. 87 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: -

“87A

1210 10 00

Hop cones, neither ground nor powdered nor in the form of pellets” ;

GST

after S. No. 93 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: -

“93A

1404 90 60

coconut shell, unworked”;

GST

in S. No. 94, for the entry in column 3, the entry “Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery; Khandsari Sugar” shall be substituted;
- in S. No. 103, for the entry in column (3), the entry “Salt (including table salt and denatured salt) and pure sodium chloride, whether or not in aqueous solutions or containing added anti-caking or free flowing agents; sea water”, shall be substituted;
- after S. No. 103 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: -

“103A

Uranium Ore Concentrate”;

GST

after S. No. 136 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: -

“136A

7113

Bangles of lac/ shellac”;

GST

in the Explanation, in clause (ii), for sub-clause (b), the following sub-clause shall be substituted, namely: -
The phrase “registered brand name” means, -
- a brand registered as on or after the 15th May 2017 under the Trade Marks Act, 1999 irrespective of whether or not the brand is subsequently deregistered;
- a brand registered as on or after the 15th May2017 under the Copyright Act, 1957(14 of 1957);
- a brand registered as on or after the 15th May2017 under any law for the time being in force in any other country.”.

2. This notification shall come into force with effect from the 15^th day of November, 2017.

(Mohit Tewari)
Under Secretary to the
Government of India

Note: - The principal notification No.2/2017- 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. 711(E), dated the 28th June, 2017 and last amended by Notification No. 35/2017- Union territory Tax (Rate) dated 13^th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number GSR 1294 (E), dated the 13^th October, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 42/2017 - Union Territory Tax (Rate)

Q1: What is Notification No. 42/2017 – UTGST Rate?

Answer:
It is a GST notification issued on 14 November 2017 amending Notification No. 2/2017-UTT(R).
The notification revised GST exemption rules for several food, agricultural, and branded products.

Q2: From when did this notification become effective?

Answer:
The notification became effective from 15 November 2017.
Businesses dealing in affected goods had to apply revised exemption rules from this date onward.

Q3: Why was branding important under this notification?

Answer:
GST exemption eligibility often depended on whether goods carried a registered brand name or enforceable brand rights.
Branded goods packed in unit containers frequently became taxable.

Q4: What is meant by “registered brand name”?

Answer:
The notification clarified that registered brand names include trademarks and copyrights registered in India or abroad.
It also covered enforceable legal rights over brands.

Q5: Were frozen vegetables exempt under this notification?

Answer:
Certain frozen vegetables qualified for exemption subject to packaging and branding conditions.
The exemption did not apply automatically in every case.

Q6: Was dried makhana exempt?

Answer:
Yes, dried makhana was added under exemption provisions subject to specified conditions.
Packaging and brand-name treatment remained important factors.

Q7: Why did the government modify jaggery exemption wording?

Answer:
The amendment expanded coverage to include different forms of jaggery and khandsari sugar.
This reduced classification confusion for traders and manufacturers.

Q8: Did the notification apply only to food products?

Answer:
No.
The notification also covered products such as coconut shell, guar meal, hop cones, and lac bangles.

Q9: What is a unit container under GST?

Answer:
A unit container generally refers to pre-packaged goods intended for retail sale in predetermined quantity.
Its interpretation significantly affects GST exemption eligibility.

Q10: Why did GST disputes increase after branding rules?

Answer:
Because businesses structured branding differently to retain exemption benefits.
Questions regarding actionable claims and enforceable rights created major interpretation issues.

Q11: Did unregistered brands always qualify for exemption?

Answer:
Not necessarily.
Even without formal registration, enforceable brand rights could affect GST exemption eligibility.

Q12: Is this notification still important today?

Answer:
Yes.
It remains highly relevant for understanding GST exemption philosophy relating to branded and unbranded goods.

Q13: Did this notification affect small businesses?

Answer:
Very significantly.
Many small food and agricultural businesses had to restructure packaging and branding strategies after these changes.

Q14: Why were agricultural products given exemptions?

Answer:
The government aimed to reduce tax burden on essential goods and support agricultural and rural sectors.
This also helped manage food inflation concerns.

Q15: Should businesses regularly review exemption eligibility?

Answer:
Yes.
GST exemption conditions change frequently, especially for food and agricultural products. Regular review helps avoid tax notices and classification disputes.
Businesses uncertain about GST applicability often seek support through GST Registration Services and professional GST advisory services.