Important Keywords: Order No. 2/2019 – Union Territory Tax, GST bill of supply rule, UT tax clarification, GST invoice vs. bill of supply, Notification No. 2/2019, Finodha GST expert,
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[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (ii)]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 8th March, 2019
Order No. 2/2019 – Union Territory Tax: To remove difficulty in implementation of Notification No. 2/2019 – Union Territory Tax (Rate)
S.O.(E). —Whereas, clause (vii) of section 21 of Union Territory Goods and Services Tax Act, 2017 (14 of 2017) read with clause (c) of sub-section (3) of section 31 the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act) provides that a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 of the said Act shall issue, instead of a tax invoice, a bill of supply, and therefore any person not covered by the said clause of the said Act has to issue a tax invoice;
Now, Therefore, in exercise of the powers conferred by section 26 of the Union Territory goods and Services Tax Act, 2017, the Central Government, on recommendations of the Council, hereby makes the following Order, to remove the difficulties, namely: ––
- Short title. ––This Order may be called the Union Territory goods and Services Tax Act, 2017 (Second Removal of Difficulties) Order, 2019.
- For the removal of difficulties, it is hereby clarified that provisions of clause (c) of sub-section (3) of section 31 of the said Act read with clause (vii) of section 21 of Union Territory Goods and Services Tax Act, 2017 (14 of 2017) shall apply to a person paying tax under Notification No. 2/2019-Union Territory Tax (Rate) dated 07.03.2019 published in the Gazette of India, Extraordinary, vide number G.S.R. No.191 (E), dated the 7th March, 2019.
[F.No. 354/25/2019-TRU]
(Dr. Sreeparvathy S.L.)
Under secretary to the Government of India
Frequently Asked Questions (📚 FAQs on Order No. 2/2019 – Union Territory Tax)
📌 Q1: What is Order No. 2/2019 – Union Territory Tax?
Answer:
Order No. 2/2019 – Union Territory Tax clarifies that persons paying tax under Notification No. 2/2019 – UT Tax (Rate) must issue a bill of supply instead of a tax invoice.
👉 Unsure about invoice requirements? Talk to Finodha GST Experts
🧾 Q2: What is a bill of supply and who should issue it?
Answer:
A bill of supply is issued by those:
✔️ Supplying exempt goods/services
✔️ Registered under the composition scheme
✔️ Covered by Notification No. 2/2019 – UT Tax (Rate)
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⚠️ Q3: Why was this order necessary?
Answer:
This order was issued to eliminate confusion between tax invoices and bills of supply for taxpayers under Notification No. 2/2019, ensuring compliance clarity.
👉 Stay error-free! Consult Finodha GST Professionals
🏢 Q4: Which businesses are impacted by Order No. 2/2019 – UT Tax?
Answer:
✔️ Composition scheme taxpayers
✔️ Exempt suppliers
✔️ Real estate businesses and contractors under concessional tax rates
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📜 Q5: What is Notification No. 2/2019 – UT Tax (Rate)?
Answer:
It defines concessional tax rates for specific suppliers, especially in real estate and construction, mandating them to issue bills of supply rather than tax invoices.
👉 Finodha keeps you updated! Visit our GST hub
🧩 Q6: What are the risks of issuing the wrong invoice type?
Answer:
❗ Wrong document type can lead to:
Non-compliance penalties
Tax liability adjustments
Increased audit scrutiny
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📝 Q7: How to correctly issue a bill of supply?
Answer:
A valid bill of supply should include:
✔️ Supplier GSTIN
✔️ Bill number and date
✔️ Supplier and recipient details
✔️ Description and value of supply
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🚀 Q8: How does Finodha support GST and business compliance?
Answer:
GST Registration
GST Return Filing
Income Tax Return (ITR) Filing
MSME Registration
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📋 Q9: What happens if compliance is not followed?
Answer:
❌ Possible GST notices, penalties, and suspension of registration.
✅ Timely compliance avoids complications and builds business trust.
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📢 Q10: How to stay updated on GST rule changes?
Answer:
Follow Finodha GST Compliance Hub
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✅ Conclusion:
Order No. 2/2019 – Union Territory Tax clarifies invoice rules for businesses under Notification No. 2/2019. For hassle-free GST compliance and filings, consult Finodha.
Download PDF: Order No. 2/2019 – Union Territory Tax
More Information: https://taxinformation.cbic.gov.in/
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