On 8th October 2024, the Ministry of Finance issued Notification No. 07/2024-Union Territory Tax (Rate), amending the Union Territory Goods and Services Tax (UTGST) rates under the provisions of the UTGST Act, 2017. The notification adds a new entry in the existing tax rate schedule regarding the transportation of passengers by air in helicopters on a seat share basis. This service will attract a tax rate of 2.5%, contingent upon not claiming input tax credit on the goods utilized for providing the service. The amendment modifies the previous Notification No. 11/2017-Union Territory Tax (Rate), initially published on 28th June 2017, with the most recent update occurring in October 2023. This new provision will take effect on 10th October 2024, further detailing the applicable tax conditions for passenger air transport services in Union Territories.
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MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 07/2024- Union Territory Tax (Rate) | Dated: 8th October, 2024
G.S.R. 618(E).— In exercise of the powers conferred by sub-sections (1), (3) and (4) of section 7, sub-section (1) of section 8, clause (iv), clause (v) 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, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) notification number 11/2017 -Union 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. 702(E), dated the 28th June, 2017, namely:-
1. In the said notification, in the Table, against serial number 8,
(i) after item (iva) and the entries relating thereto in columns (3), (4) and (5), the following item and entries relating thereto in columns (3), (4) and (5) shall be inserted, namely: –
| (3) | (4) | (5) |
| “(ivb) Transportation of passengers, with or without accompanied baggage, by air, in a helicopter on seat share basis. | 2.5 | Provided that credit of input tax charged on goods used in supplying the service has not been taken.
[Please refer to clause (iv) of paragraph 4 relating to Explanation].”. |
(ii) in column (3), in item (vii), after the brackets and figures “(iva),”, the brackets and figures “(ivb),” shall be inserted.
2. This notification shall come into force with effect from the 10th day of October, 2024.
[F. No. 190354/149/2024-TO(TRU-II) – Part-I CBEC]
DILMIL SINGH SOACH, Under Secy.
Note: – The principal notification number 11/2017 -Union 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. 702 (E), dated the 28th June, 2017 and was last amended vide notification number 12/2023-Union Tax (Rate), dated the 19th October, 2023 published in the Gazette of India, Extraordinary, Part II , Section 3 , Sub-section (i) vide number G.S.R. 761(E), dated the 19th October, 2023.
