An official notification from the Ministry of Finance introduces an amendment to the Union Territory Goods and Services Tax (UTGST) Act, 2017. Effective September 22, 2025, a new provision will be added to the existing tax framework. This amendment specifies that local delivery services will be subject to UTGST. However, there is an exception: if the individual providing these local delivery services through an e-commerce platform is already required to be registered under a specific section of the UTGST Act and the Central Goods and Services Tax (CGST) Act, they will not be subject to this new tax on local delivery. This change, recommended by the GST Council, modifies a previous UTGST notification from 2017 and its subsequent amendment in January 2025.
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 17/2025- Union Territory (Rate) | Dated: 17th September 2025
G.S.R. 671(E)- In exercise of the powers conferred by sub-section (5) of section 7 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), No.17/2017-Union Territory (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. 708(E) dated the 28th June, 2017, namely: –
In the said notification, after clause (iv), the following clause shall be inserted, namely: –
“(v) services by way of local delivery except where the person supplying such services through electronic commerce operator is liable for registration under clause (vi) of section 21 of the Union TerritoryGoods and Services Tax Act, 2017 read with sub-section (1) of section 22 of the said Central Goods and Services Tax Act.”.
2. This notification shall come into force with effect from the 22nd day of September, 2025.
[F.No.190341/188/2025-TRU]
(Md. Adil Ashraf)
Under Secretary to the Government of India
Note: – The principal notification number 17/2017 -Union Territory (Rate), was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 708 (E), dated the 28th June, 2017 and was last amended by notification number 08/2025-Union Territory (Rate), published in the Gazette of India, Extraordinary, vide number G.S.R. 49(E), dated 16th January, 2025.
