Important Keyword: Notification No. 01/2024 – Union Territory Tax, UTGST rate revision, 12/2018 amendment, GST tax rate update, Finodha GST services,
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[F. No. CBIC-20006/21/2024-GST]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, dated the 10th July, 2024
Notification No. 01/2024 – Union Territory Tax: Seeks to amend Notification No. 12/2018 – Union Territory Tax, dated 28.09.2018.
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 22 read with section 21 of Union Territory Goods and Services Tax Act, 2017 (14 of the 2017) and sub-section (1) of section 52 of the Central Goods and Services Tax Act, 2017 (12 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. 12/2018-Union Territory Tax, dated the 28th September, 2018 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 940(E), dated the 28th September, 2018, namely:-
In the said notification, for the words “half per cent.”, the figure and word “0.25 per cent.” shall be substituted.
2. This notification shall come into force from the date of its publication in official gazette.
(Raghavendra Pal Singh)
Director
Note: – The principal Notification No. 12/2018-Union Territory Tax, dated the 28th September, 2018 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 940(E), dated the 28th September, 2018.
📚 Frequently Asked Questions (FAQs): Notification No. 01/2024 – Union Territory Tax
Q1: 🧐 What does Notification No. 01/2024 – Union Territory Tax specify?
Answer:
This notification amends Notification No. 12/2018 by reducing the UTGST rate from 0.5% to 0.25%, effective from the date of its publication in the Gazette.
Q2: 📅 When does this amendment take effect?
Answer:
It is effective from the date of its publication in the official Gazette, i.e., 10th July 2024.
Q3: 🔍 What was the original rate under Notification 12/2018-Union Territory Tax?
Answer:
The original rate was “half per cent.” or 0.5% as per the 2018 notification.
Q4: 📉 What is the new revised rate under Notification 01/2024?
Answer:
The new rate is “0.25 per cent.” for UTGST under this notification.
Q5: 🏛️ Under which sections of the GST Act is this amendment issued?
Answer:
It is issued under sub-section (1) of Section 22 read with Section 21 of the Union Territory GST Act, 2017 and Section 52(1) of the CGST Act, 2017.
Q6: 📖 Why was there a need to reduce the UTGST rate?
Answer:
The rate adjustment likely reflects the government’s strategy to rationalize the tax structure and align it with current economic policies and Council recommendations.
Q7: 💼 Who is impacted by this rate revision?
Answer:
Businesses registered under UTGST across India (excluding states) that were paying 0.5% UTGST will now remit 0.25%.
Q8: 🧾 Does this change affect GST returns or compliance obligations?
Answer:
Yes, businesses must ensure accurate reporting under the new 0.25% rate in all upcoming GST returns. Tools for easy GST Return Filing are available at: https://finodha.in/gst-return-filing/
Q9: 📈 How can businesses ensure compliance with this notification?
Answer:
Businesses can consult GST professionals or use GST Compliance Services at https://finodha.in/gst-compliance/ to update billing and filing processes.
Q10: 🧮 How can I calculate the updated UTGST on invoices?
Answer:
If your turnover includes Union Territory transactions, calculate UTGST at 0.25% of the taxable amount instead of 0.5%. You may use Finodha’s GST Calculator or consult professionals for help.
💼 Related Support from Finodha
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📌 Summary
Notification No. 01/2024 – Union Territory Tax marks a significant revision in the UTGST rate, reducing it from 0.5% to 0.25%. This move, effective from 10th July 2024, aligns with recommendations of the GST Council and reflects a pro-business step to ease tax compliance in Union Territories.
✅ Final Thoughts
Stay updated with Finodha’s tailored GST compliance services and protect your business from legal errors and delays. Whether it’s GST registration, ITR filing, or business setup – Finodha has your back!
Download PDF: Notification No. 01/2024 – Union Territory Tax
More Information: https://taxinformation.cbic.gov.in/
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