Amendment in Union Territory Tax Rates for Leased Plots

Notification GSR (E) amends the Union Territory Goods and Services Tax Act, 2017 regarding tax rates for leased plots. Amendments are made to Notification No. 12/2017- Union Territory Tax (Rate) by the Central Government, acting on the Council's recommendations. Under serial number 41, the tax rate is revised from 50% to 20% for leased plots used for industrial or financial activities.

The State Government is tasked with monitoring and enforcing the condition that leased plots are used for designated purposes. Violations or changes in land use make lessors, lessees, and subsequent parties jointly liable for unpaid taxes, interest, and penalties.

Lease and sale agreements must include clauses acknowledging the tax exemption and compliance with related conditions. Effective from January 1, 2020, this amendment replaces the previous tax rates outlined in Notification No. 12/2017.

Ruchi Bisht, Under Secretary to the Government of India, oversees the implementation of these amendments. This amendment aims to ensure proper utilization of leased plots and enhance tax compliance in industrial and financial sectors.