On January 16, 2025, the Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 07/2025-Union Territory Tax (Rate), which amends the provisions of Notification No. 09/2024-Union Territory Tax (Rate) dated October 8, 2024. The amendment excludes taxpayers registered under the composition levy scheme from the reverse charge mechanism applied to renting of commercial or immovable property (other than residential dwellings) by unregistered persons to registered persons. This adjustment ensures that businesses registered under the composition scheme are not subject to the reverse charge provisions. Additionally, the notification regularizes the period from October 10, 2024, when the original notification became effective, until the issuance of the new notification, ensuring a smooth transition on an “as is where is” basis. Supply of the sponsorship services provided by the body corporates will now fall under Forward Charge Mechanism.
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi
Notification No. 07/2025- Union Territory Tax (Rate) | Dated: 16th January, 2025
G.S.R. 46(E).—In exercise of the powers conferred by sub-section (3) of section 7 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification number 13/2017 – Union Territory (Rate), of the Government of India, in the Ministry of Finance (Department of Revenue), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 704(E), dated the 28th June, 2017, namely: –
In the said notification, in the Table,-
(A) against serial number 4, in column (3), after the words “Any person”, the words “other than a body corporate” shall be inserted.
(B) against serial number 5AB, in column (4), after the words “Any registered person”, the words “other than a person who has opted to pay tax under composition levy” shall be inserted.
[F. No. 190354/2/2025-TO (TRU-II)]
MD. ADIL ASHRAF, Under Secy.
Note: –The principal notification number 13/2017 -Union Territory Tax (Rate) was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) , vide number G.S.R. 704(E), dated the 28th June, 2017 and was last amended vide notification no. 09/2024-Union Territory Tax (Rate) published in the Gazette of India, Extraordinary, Part II , Section 3, Sub-section (i) vide number G.S.R. 624(E), dated the 08th October, 2024.
