Summary: The Ministry of Finance (Department of Revenue), through Notification No. 07/2026–Union Territory Tax (Rate), dated 27 October 2026, has amended Notification No. 12/2017–Union Territory Tax (Rate), revising several GST exemptions applicable to specified services with effect from 1 November 2026. The amendments cover helicopter passenger transportation, goods transport agency (GTA) services, agricultural warehousing, provident fund services, toll collection rights and coffee curing. A new entry addresses helicopter transportation on a seat-sharing basis where passengers embark from or terminate their journey at airports or helipads in eight northeastern states or Bagdogra in West Bengal. The notification also clarifies that the exemption under serial number 21A does not extend to GTA services relating to goods supplied through an electronic commerce operator. The exemption description for storage and warehousing services has been revised to expressly cover cereals, pulses, fruits, vegetables and seeds meant for sowing. Three new Nil-rated exemption entries have been introduced for services provided by the Seamen’s Provident Fund Organisation to eligible persons, specified government grants of toll collection rights, and coffee-curing services supplied to coffee cultivators. Additionally, the definition of a goods transport agency has been substituted to expressly refer to the issuance of a consignment note, irrespective of its name. A comprehensive definition of “seed” has also been inserted, covering agricultural, horticultural and other planting materials, including tissue culture plantlets and vegetatively propagated materials. The notification further removes the explanation against serial number 18. These changes will take effect prospectively from 1 November 2026 and require affected taxpayers and service providers to review the revised exemption entries and applicable conditions.
Key Amendments
| Entry | Amendment |
|---|---|
| 15 | Helicopter seat-sharing transportation involving specified northeastern states or Bagdogra |
| 18 | Existing explanation omitted |
| 21A | GTA services relating to goods supplied through e-commerce operators excluded from the specified exemption |
| 24B | Revised agricultural storage and warehousing exemption |
| 31AA | Exemption for specified Seamen’s Provident Fund Organisation services |
| 42A | Exemption for specified government grants of toll collection rights |
| 54A | Exemption for coffee-curing services supplied to cultivators |
| Paragraph 2(ze) | Revised definition of goods transport agency |
| Paragraph 2(zzca) | New comprehensive definition of seed |
Effective Date: 1 November 2026
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi
Notification No. 07/2026–Union Territory Tax (Rate) Dated: 27th October, 2026
G.S.R. 941(E).— In exercise of the powers conferred by sub-sections (3) and (4) of section 7, sub-section (1) of section 8 and clause (iv) and clause (xxvii) of section 21 of the Union territory Goods and Services Tax Act, 2017 (14 of 2017), read with sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), number 12/2017–Union Territory Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 703(E), dated the 28th June, 2017, namely:–
In the said notification,
(a) in the Table –
(i) against serial number 15, in column (3), after item (a), the following item shall be inserted, namely:–
“(aa) air, in a helicopter on seat share basis, embarking from or terminating in an airport including a helipad located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura or at Bagdogra located in West Bengal”;
(ii) against serial number 18, in column (3), the explanation shall be omitted;
(iii) against serial number 21A, in column (3), after clause (f), the following explanation shall be inserted, namely:–
“Explanation. – Nothing contained in this entry shall apply to services provided by a goods transport agency in relation to goods, where such goods are supplied through an electronic commerce operator.”;
(iv) against serial number 24B, in column (3), the following shall be substituted, namely:–
“Services by way of storage or warehousing of cereals, pulses, fruits, vegetables, and seeds meant for sowing”;
(v) after serial number 31A and the entries relating thereto, the following serial number and entries relating thereto shall be inserted, namely:–
| Serial No. | Heading | Description of Services | Rate | Condition |
|---|---|---|---|---|
| 31AA | Heading 9971 or Heading 9991 | Services by Seamen’s Provident Fund Organisation to persons governed by the Seamen’s Provident Fund Act, 1966 (4 of 1966). | Nil | Nil |
(vi) after serial number 42 and the entries relating thereto, the following serial number and entries relating thereto shall be inserted, namely:–
| Serial No. | Heading | Description of Services | Rate | Condition |
|---|---|---|---|---|
| 42A | Heading 9973 | Services by way of grant of exclusive right of way or access, license and authority to demand, collect and appropriate toll fee by the Central Government, State Government, Union Territory, Local Authority, Governmental Authority or Government Entity. | Nil | Nil |
(vii) after serial number 54 and the entries relating thereto, the following serial number and entries relating thereto shall be inserted, namely:–
| Serial No. | Heading | Description of Services | Rate | Condition |
|---|---|---|---|---|
| 54A | Heading 9986 | Services by way of curing of coffee supplied to coffee cultivators. Explanation – For the purposes of this entry, “curing” shall have the same meaning as assigned to it in clause (d) of section 3 of the Coffee Act, 1942 (7 of 1942). | Nil | Nil |
(b) in paragraph 2,
(i) for clause (ze), the following clause shall be substituted:–
‘(ze) “goods transport agency” means any person who provides service in relation to transport of goods by road and issues a consignment note by whatever name called.’
(ii) after clause (zzc), the following clause shall be inserted, namely:–
‘(zzca) “seed” means any plant material, including seedlings, tubers, bulbs, rhizomes, roots, cuttings, all types of grafts, tissue culture plantlets, and other vegetatively propagated material, used or intended for use in propagation or sowing, and includes –
(i) seeds of cereals, coarse cereals, pulses, oilseeds, fibre crops, forage and fodder crops, green manures, sugar crops;
(ii) seeds of fruits, vegetables, spices, flower crops, ornamental crops and plantation crops; and
(iii) planting material.’.
2. This notification shall come into force with effect from the 1st day of November, 2026.
[F. No. 190354/142/2026-TRU Section-CBIC]
MD. ADIL ASHRAF, Under Secy.
Note: The principal notification No. 12/2017–Union Territory Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 703(E), dated the 28th June, 2017 and was last amended vide notification number 16/2025–Union Territory Tax (Rate) dated the 17th September, 2025 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 668(E), dated the 17th September, 2025.
