Seeks to amend Notification No. 8/2018- Union Territory Tax (Rate) dated 25.01.2018 Vide Notification No. 12/2025-Union Territory Tax (Rate) Dated: 17th September, 2025 to notify UTGST Rate Changes on Motor Vehicles Effective 22 Sept 2025
Ministry of Finance has issued Notification No. 12/2025–Union Territory Tax (Rate) dated 17 September 2025, amending the Union Territory GST framework applicable to motor vehicles. This notification modifies the earlier Notification No. 8/2018–Union Territory Tax (Rate) dated 25 January 2018. The amendment substitutes the reference to “Schedule IV of Notification No. 1/2017–Union Territory Tax (Rate)” with “Schedule II or Schedule III of Notification No. 9/2025–Union Territory Tax (Rate).” The change effectively updates the applicable schedules used for determining UTGST rates on specified categories of motor vehicles. As a result, tax treatment on motor vehicles under Union Territory GST will now be aligned with the revised schedules introduced under the 2025 framework. The amendment has been issued under 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 comes into force from 22 September 2025. The original notification of 2018 had prescribed rate applicability based on references to Notification No. 1/2017. Over time, it has been amended on multiple occasions, most recently through Notification No. 04/2025 dated 16 January 2025. With this latest update, the government has sought to bring motor vehicle taxation under Union Territory GST in line with the revised structure introduced in 2025, ensuring consistency and reducing ambiguity in rate application. This adjustment is expected to have a direct impact on the UTGST liability of businesses and individuals dealing in motor vehicles in Union Territories.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 12/2025-Union Territory Tax (Rate) | Dated: 17th September, 2025
G.S.R. 652(E). – In exercise of the powers conferred by sub-section (1) of section 8 of the Union Territory Goods and Services Act, 2017 (14 of 2017), the Central Government, on 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. 8/2018-Union Territory Tax (Rate), dated the 25th January, 2018, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 90(E), dated the 25th January, 2018, namely :-
In the said notification, for the words, brackets, and figures, “Schedule IV of Notification No. 1/2017-Union Tax (Rate)”, the following shall be substituted, namely:- “Schedule II or Schedule III of Notification No. 9/2025 – Union Territory Tax (Rate)”, 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 the Government of India
Note: The principal notification No. 8/2018-Union Territory Tax (Rate), dated the 25th January 2018, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide G.S.R. 90(E), dated the 25th January, 2018 and last amended by Notification No. 04/2025-Union Territory Tax (Rate) dated the 16th January, 2025, vide G.S.R. 60(E), dated the 16th January, 2025.
