Amendment in Union Territory Tax (Rate) for Motor Vehicle Rentals

Notification GSR (E) introduces amendments to the Union Territory Goods and Services Tax Act, 2017, regarding motor vehicle rental services. The Central Government, acting on the Council's recommendations, amends Notification No. 13/2017- Union Territory Tax (Rate).

Serial number 15 and related entries are substituted to clarify that services of renting motor vehicles, with fuel costs included, provided to a body corporate, attract a 6% union territory tax. The amendment aims to ensure uniform tax treatment for motor vehicle rental services across the Union Territories.

Under Secretary to the Government of India, Ruchi Bisht, oversees the implementation of this amendment. This amendment aligns with the government's efforts to streamline tax regulations and enhance transparency in service tax compliance.

Effective from the date of issuance, this amendment replaces the previous provision outlined in Notification No. 13/2017.