Notification No. 18/2023-Union Territory Tax (Rate) Dated: 19th October, 2023

On October 19, 2023, the Ministry of Finance, Department of Revenue, Government of India, released Notification No. 18/2023- Union Territory Tax (Rate). This notification introduces crucial amendments to the tax rates defined under the Union Territory Goods and Services Tax Act, 2017. The changes are applicable to Schedule I and have a significant impact on food preparations containing millet flour. In this article, we will provide an in-depth analysis of these amendments.

Detailed Analysis:

1. Schedule I – 2.5% Amendment:

Introduction of Entry 94A: Notification 18/2023 adds a new entry, 94A, which deals with “Food preparation of millet flour, in powder form, containing at least 70% millets by weight, other than pre-packaged and labeled.” This food product is now subject to a 2.5% tax rate. It’s important to note that the amendment focuses on products that are not pre-packaged and labeled, which is a distinct categorization.

Conclusion:

Notification No. 18/2023- Union Territory Tax (Rate) represents a significant step in the direction of refining and fine-tuning the tax structure in India. The focus of this amendment is on food preparations containing millet flour, particularly those that are not pre-packaged and labeled. By introducing this category and subjecting it to a 2.5% tax rate, the government aims to create a more equitable tax system that accurately reflects the nature and packaging of products.

This change has implications for manufacturers, distributors, and consumers of food products containing millet flour. It’s essential for these stakeholders to understand the new tax treatment, ensure compliance, and make any necessary adjustments to pricing and labeling strategies.

In conclusion, Notification No. 18/2023- Union Territory Tax (Rate) is part of the ongoing effort to streamline and improve India’s tax system, making it fairer and more precise. The amendment addresses specific product categories and their unique characteristics, ensuring that the tax structure aligns with the nature of the goods being taxed. This benefits both taxpayers and the government by reducing ambiguities and promoting better compliance.

Staying informed about such tax changes is crucial for businesses and individuals operating in India to navigate the evolving tax landscape effectively and continue contributing to the nation’s economic growth.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 18/2023- Union Territory Tax (Rate) | Dated: 19^th October, 2023

G.S.R. 779(E).- In exercise of the powers conferred by sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, 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, Ministry of Finance (Department of Revenue), No. 2/2017-Union Territory (Rate), dated the 28^th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub­section (i), vide number G.S.R. 711(E), dated the 28^th June, 2017, namely:-:-

In the said notification, in the Schedule, after S. No. 94 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: –

2. This notification shall come into force with effect from the 20^th day of October, 2023.

[F. No. CBIC-190354/195/2023-TO(TRU-II)-CBEC]

Vikram Wanere
Under Secretary

Note: – The principal notification No. 2/2017- Union Territory Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 711(E)., dated the 28^th June, 2017 and was last amended by notification No. 04/2023 – Union Territory Tax (Rate), dated the 28^th February, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 152(E)., dated the 28^th February, 2023.