Adjustments to Union Territory Tax Rates

Notification GSR (E) introduces amendments to the Union Territory Goods and Services Tax Act, 2017, affecting tax rates. The Central Government, acting on Council recommendations, modifies Notification No. 1/2017- Union Territory Tax (Rate) issued on June 28, 2017. In Schedule II, the removal of serial numbers 80AA and 171A and their corresponding entries results in a 6% tax rate adjustment.

Schedule III sees an addition after serial number 163A, introducing tax rates for specific items like woven bags and flexible bulk containers. Effective from January 1, 2020, these adjustments aim to streamline tax rates and improve clarity in taxation.

Gunjan Kumar Verma, Under Secretary to the Government of India, oversees the implementation of these changes. This amendment ensures consistency and simplicity in Union Territory tax rates, facilitating smoother tax compliance.

The principal notification, No.1/2017- Union Territory Tax (Rate), has been periodically updated, with the latest amendment being No. 14/2019. These adjustments reflect ongoing efforts to refine tax structures and support economic activities within Union Territories.