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Notification No. 45/2017 – UTTR Explained

by Shakshi Bharti | May 26, 2024 | GST, 2017 Notifications, Notifications, Union Territory Tax (Rate) 2017 Notifications | 0 comments

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Words: 2050 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. 45/2017 - Union territory Tax (Rate): Seeks to provide concessional GST rate of 2.5% on scientific and technical equipment's supplied to public funded research institutions.

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 8 of the UTGST Act, 2017 (14 of 2017) ( hereafter in this notification referred to as “the said Act”), the Central Government, on being satisfied that it is necessary in the public interest so to do , on the recommendations of the Council,

hereby exempts the goods specified in column (3) of the Table below, from the so much of the union territory tax leviable thereon under section 7 of the said Act, as in in excess of the amount calculated at the rate of 2.5 per cent., when supplied to the institutions specified in the corresponding entry in column (2) of the Table, subject to the conditions specified in the corresponding entry in column (4) of the said Table-

Table

S. No.	Name of the Institutions	Description of the goods	Conditions
(1)	(2)	(3)	(4)
1.	Public funded research institution other than a hospital or a University or an Indian Institute of Technology or Indian Institute of Science, Bangalore or a National Institute Technology/ Regional Engineering College	Scientific and technical instruments, apparatus, equipment (including computers); accessories, parts, consumables and live animals (experimental purpose); computer software, Compact Disc-Read Only Memory (CD-ROM), recorded magnetic tapes, microfilms, microfiches; (d)Prototypes, the aggregate value of prototypes received by an institution does not exceed fifty thousand rupees in financial year.	(i) The goods are supplied to or for – a public funded research institution under the administrative control of the Department of Space or Department of Atomic Energy or the Defence Research Development Organisation of the Government of India and such institution produces a certificate to that effect from an officer not below the rank of the Deputy Secretary to the Government of India or the Deputy Secretary to the State Government or the Deputy Secretary in the Union Territory in the concerned department to the supplier at the time of supply of the specified goods; or an institution registered with the Government of India in the

			Department of Scientific and Research and such institution produces a certificate from an officer not below the rank of the Deputy Secretary to the Government of India or the Deputy Secretary to the State Government or the Deputy Secretary in the Union territory in concerned department to the supplier at the time of supply of the specified goods; The institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution, in each case, certifying that the said goods are required for research purposes only;In the case of supply of live animals for experimental purposes, the institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution that the live animals are required for research purposes and enclose a no objection certificate issued by the Committee for the Purpose of Control and Supervision of Experiments on Animals.
2.	Research institution, other than a hospital	Scientific and technical instruments, apparatus, equipment (including computers); accessories, parts, consumables and live animals (experimental purpose); computer software, Compact Disc-Read Only Memory (CD-ROM), recorded magnetic tapes, microfilms, microfiches; Prototypes, the aggregate value of prototypes received by an institution does not exceed fifty thousand rupees in a financial year.	The institution is registered with the Government of India in the Department of Scientific and Research, which-produces, at the time of supply, a certificate to the supplier from the head of the institution, in each case, certifying that the said goods are essential for research purposes and will be used for stated purpose only;in the case of supply of live animals for experimental purposes, the institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution that the live animals are required for

			research purposes and enclose a no objection certificate issued by the Committee for the Purpose of Control and Supervision of Experiments on Animals. (2) The goods falling under (1) above shall not be transferred or sold by the institution for a period of five years from the date of installation.
3.	Departments and laboratories of the Central Government and State Governments, other than a hospital	Scientific and technical instruments, apparatus, equipment (including computers); accessories, parts, consumables and live animals (experimental purpose);Computer software, Compact Disc-Read Only Memory(CD-ROM), recorded magnetic tapes, microfilms, microfiches; Prototypes, the aggregate value of prototypes received by an institution does not exceed fifty thousand rupees in a financial year.	The institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution, in each case, certifying that the said goods are required for research purposes only;in the case of supply of live animals for experimental purposes, the institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution that the live animals are required for research purposes and enclose a no objection certificate issued by the Committee for the Purpose of Control and Supervision of Experiments on Animals.
4.	Regional Cancer Centre (Cancer Institute)	Scientific and technical instruments, apparatus, equipment (including computers); accessories, parts, consumables and live animals (experimental purpose);Computer software, Compact Disc-Read Only Memory(CD-ROM), recorded magnetic tapes, microfilms, microfiches.	The goods are supplied to the Regional Cancer Centre registered with the Government of India, in the Department of Scientific and Research and such institution produces a certificate from an officer not below the rank of the Deputy Secretary to the Government of India or the Deputy Secretary to the State Government or the Deputy Secretary in the Union territory in concerned department to the supplier at the time of supply of the specified goods;the institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution, in each case, certifying that the said goods are required for research purposes

only; (iii) in case of supply of live animals for experimental purposes, the institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution that the live animals are required for research purposes and enclose a no objection certificate issued by the Committee for the Purpose of Control and Supervision of Experiments on Animals.

GST Explanation. - For the purposes of this notification, the expression, -

"Public funded research institution" means a research institution in the case of which not less than fifty per-cent. of the recurring expenditure is met by the Central Government or the Government of any State or the administration of any Union territory;

"University" means a University established or incorporated by or under a Central, State or Provincial Act and includes -

an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956) to be a deemed University for the purposes of this Act;

an institution declared by Parliament by law to be an institution of national importance;

a college maintained by, or affiliated to, a University;

"Head" means -
- in relation to an institution, the Director thereof (by whatever name called);

in relation to a University, the Registrar thereof (by whatever name called);

in relation to a college, the Principal thereof (by whatever name called);

"hospital" includes any Institution, Centre, Trust, Society, Association, Laboratory, Clinic or Maternity Home which renders medical, surgical or diagnostic treatment.

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

(Ruchi Bisht)
Under Secretary to
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 45/2017 - Union Territory Tax (Rate)

Q1: What is Notification No. 45/2017 – UTGST Rate?

Answer:
It is a GST notification providing concessional GST at 5% on specified scientific and technical equipment supplied to eligible research institutions.
The notification aims to reduce research infrastructure costs for public-funded and government-supported institutions.

Q2: What is the concessional GST rate under this notification?

Answer:
The effective GST rate is 5%, consisting of 2.5% UTGST and 2.5% CGST.
The notification exempts GST exceeding 2.5% UTGST on eligible supplies.

Q3: From when is the notification applicable?

Answer:
The notification became effective from 15 November 2017.
Eligible institutions could claim concessional procurement benefits from this date onward.

Q4: Which institutions are eligible?

Answer:
Eligible institutions include public-funded research institutions, government laboratories, registered research institutions, and Regional Cancer Centres.
However, conditions and documentation requirements vary for different categories.

Q5: Are universities automatically covered?

Answer:
Not necessarily.
The notification specifically excludes certain institutions from particular categories and defines “University” separately. Eligibility should be examined carefully based on notification wording.

Q6: Which goods qualify for concessional GST?

Answer:
Scientific instruments, computers, software, accessories, consumables, research prototypes, and experimental live animals are covered.
The goods must generally be used for research purposes only.

Q7: Is computer software covered?

Answer:
Yes.
The notification specifically includes computer software, CD-ROMs, recorded tapes, microfilms, and similar research-related materials.

Q8: Are live animals covered under this concession?

Answer:
Yes, but additional compliance applies.
Institutions must provide certificates and a no-objection certificate from the appropriate animal experimentation authority.

Q9: Can institutions sell the concessional goods later?

Answer:
Certain institutions cannot transfer or sell the goods for five years from installation.
This restriction prevents misuse of concessional procurement benefits.

Q10: What happens if certificates are not provided?

Answer:
If required certificates are unavailable, suppliers may charge normal GST rates.
This is why documentation timing is extremely important.

Q11: Is the benefit available automatically?

Answer:
No.
Institutions must actively satisfy notification conditions and provide supporting certificates to suppliers.

Q12: Why is this notification important for research institutions?

Answer:
Research equipment is expensive, and GST significantly impacts project budgets.
The notification helps reduce procurement cost and supports scientific development.

Q13: Does the notification apply to private companies doing research?

Answer:
Only eligible institutions covered under the notification qualify.
Private entities must carefully verify whether they satisfy the prescribed conditions and registration requirements.

Q14: Why do suppliers hesitate to apply concessional GST?

Answer:
Suppliers fear future GST litigation if documentation is incomplete or incorrect.
That is why many vendors insist on complete certification before invoicing.

Q15: Should institutions maintain records after procurement?

Answer:
Yes. Proper documentation and usage records are extremely important.
During GST audits or departmental verification, institutions may need to prove compliance with notification conditions.
Businesses and institutions facing documentation confusion often seek assistance through GST Return Filing and professional GST review services.