What is Union Territory Goods & Services Tax (UTGST)?

UTGST stands for “Union Territory Goods and Service Tax”. The UTGST bill is presented in some specific parts of India like Union Territories like Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi(National Capital Territory Of Delhi), Lakshadweep and Puducherry. The main purpose of UTGST bull is to apply a collection of tax on every Intra UT supply of goods and service in the Union territories in absence of legislature and has similar properties as that of SGST. The Parliament is looking forward to implement a separate act to impose and supervise GST in Union territories under the name of UTGST act. The bill will be presented in respective Union territories for further changes in the implementation of GST.

What does SGST include?

How does UTGST Works:

UTSC works the same way as SGST (State GST) .The government levy taxes in the same manner they collect from other states. For example, when an intra – state (within same states) sales or business takes place, the government collects goods and services tax in the form of CGST + SGST. Similarly, when for any supply of goods and services takes place within a Union territory , the Central government will collect GST and Union Government will collect UTGST. Input tax credit for UTGST is equivalent to SGST.

Features of UTGST:

1. The Union Territory Goods & Services Tax Bill, 2017 was introduced in Lok Sabha on March 27, 2017. The Bill provides for the levy of the Union Territory Goods and Services Tax(UGST).
2. Levy of UTGST: The centre will levy UTGST on the supply of goods and services within the boundary of a Union territory.
3. Tax Rates: The tax rates of UTGST will be recommended by the GST Council and will not exceed 20%.
4. Exemptions from UTGST: The centre may exempt certain goods and services from the purview of UGST through notification based on recommendations of the GST Council.
5. Assistance to search, seizure and arrest: All officers of Police, Railways, Customs, and those officers engaged in the collection of land revenue, including village officers, and officers of Central tax will assist the tax administrative officers in the implementation of this Act.
6. Applicability of provisions of Central Goods and Services Tax Act 2017: Several provisions of the Central Goods and Services Tax Act, 2017 apply to this Act. Such provisions include(a) time and value of supply, (b) composition levy, (c) registration, (d) returns, (e) payment of tax, (f) assessment, (g) refunds, (h) inspection, (i) search and seizure. (j) advancing ruling, (k) appeals and offenses.
7. Transition to the new regime: Taxpayers with unutilised input credit obtained under the current laws may utilize it under GST.

Updated New GST Rates as from April 1st, 2018:

Items Old Tax Rate Country
Second Hand medium and large cars and SUV’s 28% 18%
LPG supply for household domestic consumers by private LPG distributors 18% 5%
Bio-fuels powered buses 28% 18%
Sugar boiled confectionary 18% 12%
Drinking water packed in 20 Liter bottles 18% 12%
Drip Irrigation System 18% 12%
Cigarette filled rods 12% 18%
Tailoring service 18% 5%
Admission to Theme parks, Water parks, etc 28% 18%
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