Revamping UTGST Act for Simplified Taxation

Legislative Empowerment: Sub-section (1) of section 8 of the UTGST Act, 2017 empowers the Central Government to enact amendments for Union Territories.

Noteworthy Amendments: Changes made in the notification No. 2/2017-Union Territory Tax (Rate), dated June 28, 2017, are significant. Amendments specifically target the Schedule of the notification.

Exclusions in Schedule: Various items in the Schedule now exclude pre-packaged and labelled goods, streamlining tax applicability. Amendments affect S. Nos. 9, 22, 26, 27, 29, 30B, 45, 46A, 46B, 65-75, 77, 78, 94, 95, 97A, 99, 108, 118, 122, 132A, and 141.

Definition Refinement: Explanation clause (ii) introduces a refined definition of 'pre-packaged and labelled,' aligning with the Legal Metrology Act, 2009.

Effective Date: The notification becomes effective from July 18, 2022.

Regulatory Authority: The amendments are enacted based on recommendations from the Council, ensuring collaborative decision-making.

Clarification for Implementation: The official notification provides clarity on the implementation of the amendments, emphasizing adherence to the Legal Metrology Act.

These amendments mark a step towards a more streamlined and transparent tax regime for Union Territories, providing clarity on taxable items.