Important Keyword: Notification No. 06/2024 – Union Territory Tax (Rate), Union Territory Tax Rate, GST scrap exemption, UTGST Notification 06/2024, GST update October 2024, GST metal scrap rate, UTGST 2024 amendments,
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Table of Contents
[F. No. CBIC-190354/149/2024-TO(TRU-II)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 8th October, 2024
Notification No. 06/2024 – Union Territory Tax (Rate): Seeks to amend Notification No. 4/2017 – Union Territory Tax (Rate) dated 28.06.2017.
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 (3) 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 makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 4/2017- Union Territory Tax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 713(E), dated the 28th June, 2017, namely:-
In the said notification, in the Table, after S. No. 7 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: –
| (1) | (2) | (3) | (4) | (5) |
| “8. | 72, 73, 74, 75, 76, 77, 78, 79, 80 or 81 | Metal scrap | Any unregistered person | Any registered person”. |
2. This notification shall come into force on the 10th day of October, 2024.
(Amreeta Titus)
Deputy Secretary
Note: – The principal notification No. 4/2017- Union Territory Tax (Rate) was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 713(E), dated the 28thJune, 2017 and was last amended by notification No. 19/2023- Union Territory Tax (Rate), dated the 19th October, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 782(E), dated the 19th October, 2023.
📚 Frequently Asked Questions (FAQs): Notification No. 06/2024 – Union Territory Tax (Rate)
❓ Q1: What is Notification No. 06/2024 – Union Territory Tax (Rate) about?
Answer:
This notification, issued on 8th October 2024, amends Notification No. 4/2017-Union Territory Tax (Rate) to introduce a specific entry regarding the supply of metal scrap. It states that the supply of metal scrap (under headings 72 to 81) by an unregistered person to a registered person is taxable under UTGST.
🗓️ Q2: When does this amendment come into effect?
Answer:
The amendment takes effect from 10th October 2024 as per the notification.
🔍 Q3: Who does this notification primarily affect?
Answer:
This amendment affects both unregistered sellers of metal scrap and registered buyers under the Union Territory GST regime. Registered buyers are liable to pay tax under reverse charge for such transactions.
🔄 Q4: What items are covered under this notification?
Answer:
The notification applies to metal scrap falling under Chapter headings 72 to 81 of the tariff, including iron, steel, copper, aluminum, and other base metals.
📥 Q5: What GST mechanism is applicable under this notification?
Answer:
The reverse charge mechanism (RCM) applies. If an unregistered person supplies metal scrap to a registered dealer, the buyer must pay UTGST on the transaction.
🧾 Q6: What was the earlier position under Notification 4/2017?
Answer:
Previously, the supply of metal scrap by unregistered persons wasn’t explicitly listed. Notification No. 06/2024 formally clarifies this point and brings it under the RCM.
💼 Q7: Does this impact compliance for businesses dealing in scrap?
Answer:
Yes, businesses need to maintain proper documentation for such purchases and ensure timely reverse charge payments to avoid penalties. Need help? Finodha’s GST Compliance service has you covered: https://finodha.in/gst-compliance/
🏛️ Q8: Is this applicable only in Union Territories?
Answer:
Yes, this notification specifically amends the Union Territory Tax (Rate) framework and applies to Union Territories like Chandigarh, Daman & Diu, Andaman & Nicobar, etc.
📘 Q9: Are there other recent amendments to Notification 4/2017?
Answer:
Yes, prior to this, the last amendment was Notification No. 19/2023 dated 19th October 2023. This shows that the Union Government periodically updates GST applicability to evolving trade scenarios.
📌 Q10: Where can I find professional help for interpreting GST notifications?
Answer:
For expert guidance on GST laws, filings, and exemptions, connect with Finodha’s GST professionals via www.Finodha.in or get started with GST Registration here: https://finodha.in/online-gst-registration/
📎 Bonus Tip:
Need a Digital Signature Certificate (DSC) to stay compliant while filing reverse charge returns? Apply now at: https://finodha.in/online-dsc-digital-signature-certificate/
✅ Summary:
Notification No. 06/2024 – Union Territory Tax (Rate) enhances GST compliance by covering metal scrap purchases from unregistered dealers under reverse charge. Applicable from 10th October 2024, this aligns Union Territories with core GST principles and ensures tax neutrality.
💡 For GST Return Filing Assistance → https://finodha.in/gst-return-filing/
Download PDF: Notification No. 06/2024 – Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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