On October 19, 2023, the Ministry of Finance, Department of Revenue, Government of India, issued Notification No. 19/2023- Union Territory Tax (Rate). This notification introduces amendments to the tax rates specified in the Union Territory Goods and Services Tax Act, 2017. These changes have implications for the Central Government, State Government, Union territories, and local authorities. In this article, we will provide a comprehensive analysis of these amendments.
Detailed Analysis:
1. Amendment to S. No. 6:
- The amendment focuses on entry number 6 in the table of the notification. It pertains to entities that are subject to certain tax rates. The amendment replaces the existing entry with the following: “Central Government [excluding Ministry of Railways (Indian Railways)], State Government, Union territory, or a local authority.”
- Implications: This change explicitly defines the entities that fall under this tax rate, excluding the Ministry of Railways (Indian Railways). It has a direct impact on how these entities are taxed under the Union Territory Goods and Services Tax Act.
Conclusion:
Notification No. 19/2023- Union Territory Tax (Rate) marks a significant step in aligning tax rates with specific governmental entities. The amendment to S. No. 6 in the notification table clearly outlines the entities subject to the specified tax rates, making it easier to determine the tax obligations of the Central Government, State Government, Union territories, and local authorities. The exclusion of the Ministry of Railways (Indian Railways) is a notable distinction.
This change simplifies the tax structure and ensures that the entities listed understand their tax responsibilities. It promotes transparency and clarity in tax compliance, benefiting both the government and taxpayers. The effective date of October 20, 2023, is crucial for these entities to adapt to the updated tax rates and obligations.
In conclusion, Notification No. 19/2023- Union Territory Tax (Rate) is part of the ongoing effort to streamline and enhance India’s tax system, making it more precise and effective. This amendment ensures that taxation aligns with the specific entities mentioned, bringing greater clarity and transparency to tax compliance.
Entities falling under these categories must ensure they are well-informed about these changes and adapt their tax processes accordingly. Staying compliant with the updated tax rates is essential for these entities, and it is in the best interest of all stakeholders to adhere to the revised tax structure.
These amendments not only contribute to efficient tax administration but also support the government’s broader goal of fostering economic growth and development.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 19/2023-Union Territory Tax (Rate) | Dated: 19th October, 2023
G.S.R.782 (E).– In exercise of the powers conferred by sub-section (3) of section 7of the Union Territory Goods and Services Tax Act, 2017 (14of 2017), the Central Government, 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. 4/2017-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. 713(E),dated the 28th June, 2017, namely:-
In the said notification, in the Table, against S. No. 6, in column 4, for the entry, the following entry may be substituted, namely: –
“Central Government [excluding Ministry of Railways (Indian Railways)], State Government, Union territory or a local authority.”
2. This notification shall come into force with effect from the 20th day of October, 2023.
[F. No. CBIC-190354/1 95/2023-TO(TRU-II)-CBEC]
Vikram Wanere
Under Secretary
Note: – The principal No. 4/2017-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. 713(E), dated the 28thJune, 2017 and was last amended by notification No. 14/2022-Union Territory Tax (Rate), dated the 30th December, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 924 (E), dated the 30th December, 2022.
