Ministry of Finance has issued Notification No. 11/2025–Union Territory Tax (Rate) dated 17 September 2025, revising the Union Territory Goods and Services Tax (UTGST) applicable on specified petroleum operations. Through this notification, the tax rate under the earlier entry notified in Notification No. 3/2017–Union Territory Tax (Rate), dated 28 June 2017, has been amended. As per the revised provision, the applicable UTGST rate has been enhanced from 9 per cent to 18 per cent. This change is set to come into effect from 22 September 2025. The amendment is issued under the powers granted to the Central Government by Section 8(1) of the Union Territory Goods and Services Tax Act, 2017, and is based on the recommendations of the GST Council. The notification supersedes the earlier rate specified in the table against Serial No. 1 of the 2017 notification, which until now prescribed a 9 per cent rate. The revised rate will now align the UTGST component with other applicable levies, thereby altering the overall tax burden on petroleum operations carried out in Union Territories. The 2017 notification had been amended several times earlier, most recently by Notification No. 08/2022 dated 13 July 2022. With this change, the effective tax outgo on petroleum-related activities within Union Territories is expected to increase, marking a significant fiscal adjustment in the indirect tax structure.
Government of India
Ministry of Finance
(department of Revenue)
Notification No. 11/2025- Union Territory Tax (Rate) | Dated: 17th September, 2025
G.S.R. 649(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, in the Ministry of Finance (Department of Revenue), No. 3/2017- 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. 712(E), dated the 28th June, 2017, namely:-
In the said notification, in the TABLE, against S. No. 1, for the entry under column (4), the entry “9%” shall be substituted.
2. This notification shall come into force on the 22nd day of September, 2025.
[F. No. CBIC-190341/188/2025-TRU]
Dheeraj Sharma
Under Secretary to Government of India
Note: – The principal notification No.3/2017- 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. 712(E), dated the 28th day of June, 2017 and last amended by notification No. 08/2022- 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. 558(E), dated the 13th July, 2022.
