The Government of India, under the Ministry of Finance, Department of Revenue, has issued Notification No. 20/2023, dated 19th October, 2023. This notification signifies important amendments in the Union Territory Tax (Rate). In this article, we will provide a detailed analysis of the changes, their implications, and the context behind these amendments.
Detailed Analysis
The notification, titled G.S.R. 785(E), exercises its powers as per clause (ii) of the proviso to sub-section (3) of section 54 of the Central Goods and Services Tax Act, 2017 (12 of 2017), in conjunction with section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017). The Central Government, acting upon the recommendations of the Council, has introduced amendments to the existing notification No. 5/2017- Union Territory Tax (Rate), originally published on the 28th day of June, 2017.
Amendments
In the amended notification, a new entry labeled “6AA” has been added to the existing TABLE, right after S. No. 6A. The newly introduced entry pertains to “5605 – Imitation zari thread or yarn made out of Metallised polyester film /plastic film.” It’s worth noting that this entry applies exclusively to refund input tax credit related to polyester film or plastic film.
Effective Date
The amendments outlined in this notification are scheduled to take effect on the 20th day of October, 2023. This effective date is critical for businesses and taxpayers, as compliance with the revised tax rates and provisions will be mandatory from this point forward.
Conclusion
The Ministry of Finance’s recent notification No. 20/2023 reflects the Government of India’s commitment to refining and adapting the tax structure to meet the evolving needs of the Union Territories. These amendments, while specific to polyester and plastic film, carry broader implications for the tax landscape in the Union Territories. To ensure compliance and remain up-to-date, taxpayers and businesses should promptly evaluate the impact of these changes and make any necessary adjustments to their financial and operational strategies.
In a broader context, this notification underscores the ongoing effort of the Indian government to streamline and enhance the tax system, promoting economic growth and stability in the Union Territories. Stay informed and consult with tax professionals to navigate the complexities of these amendments effectively.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 20/2023- Union Territory Tax (Rate)|Dated: 19th October, 2023
G.S.R. 785(E).– In exercise of the powers conferred by clause (ii) of the proviso to sub-section (3) of section 54 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read with section 21 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 of the Government of India in the Ministry of Finance (Department of Revenue), notification No.5/2017- Union Territory Tax (Rate), dated the 28th day of June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 714(E), dated the 28th June, 2017, namely :-
In the said notification, in the TABLE, after S. No. 6A and the entries relating thereto, following S. No. and the entries shall be inserted, namely: –
| (1) | (2) | (3) |
| “6AA. | 5605 | Imitation zari thread or yarn made out of Metallised polyester film /plastic film;
Explanation: This entry shall apply for refund of input tax credit only on polyester film /plastic film”; |
2. This notification shall come into force with effect from the 20th day of October, 2023.
[F. No. CBIC-190354/195/2023-TO(TRU-II)-CBEC]
Vikram Wanere
Under Secretary
Note: – The principal notification No.5/2017- Union Territory Tax (Rate), dated the 28th day of June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 714(E)., dated the 28th day of June, 2017, and was last amended by notification No. 9/2022 – Union Territory Tax (Rate), dated the 13th July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 561(E)., dated the 13th July, 2022.
