Section 1 UTGST - Short title, extent

and commencement
Last updated at April 27, 2017 by Teachoo

According to Section 1 of Union Territory Goods and Service Tax Act, 2017:

1. This Act may be called the Union Territory Goods and Services Tax Act, 2017.

2. It extends to the Union territories of the Andaman and Nicobar Islands,

Lakshadweep, Dadra and Nagar Haveli, Daman and Diu, Chandigarh and other

territory.

3. It shall come into force on such date as the Central Government may, by

notification in the Official Gazette, appoint: Provided that different dates may

be appointed for different provisions of this Act and any reference in any such

provision to the commencement of this Act shall be construed as a reference to

the coming into force of that provision.

Section 2 UTGST - Definitions

Last updated at April 27, 2017 by Teachoo
According to Section 2 of Union Territory Goods and Service Tax Act, 2017:
In this Act, unless the context otherwise requires,—

1. ‘‘appointed day’’ means the date on which the provisions of this Act shall

come into force;

2. ‘‘Commissioner’’ means the Commissioner of Union territory tax appointed

under section 3;

3. ‘‘designated authority’’ means such authority as may be notified by the

Commissioner;

4. ‘‘exempt supply’’ means supply of any goods or services or both which

attracts nil rate of tax or which may be exempt from tax under section 8, or

under section 6 of the Integrated Goods and Services Tax Act, and includes

non-taxable supply;

5. ‘‘existing law’’ means any law, notification, order, rule or regulation relating

to levy and collection of duty or tax on goods or services or both passed or

made before the commencement of this Act by Parliament or any Authority or

person having the power to make such law, notification, order, rule or

regulation;

6. ‘‘Government’’ means the Administrator or any Authority or officer

authorised to act as Administrator by the Central Government;

7. ‘‘output tax’’ in relation to a taxable person, means the Union territory tax

chargeable under this Act on taxable supply of goods or services or both made

by him or by his agent but excludes tax payable by him on reverse charge basis;

8. ‘‘Union territory’’ means the territory of,—

i. the Andaman and Nicobar Islands;

ii. Lakshadweep;
 iii. Dadra and Nagar Haveli;

iv. Daman and Diu;

v. Chandigarh; or

vi. other territory.

Explanation.—For the purposes of this Act, each of the territories

specified in sub-clauses (i) to (vi) shall be considered to be a separate

Union territory;

9. ‘‘Union territory tax’’ means the tax levied under this Act;

10. words and expressions used and not defined in this Act but defined in the

Central Goods and Services Tax Act, the Integrated Goods and Services Tax

Act, the State Goods and Services Tax Act, and the Goods and Services Tax

(Compensation to States) Act, shall have the same meaning as assigned to them

in those Acts.

11. Section 3 UTGST - Officers under

this Act
12. Last updated at April 27, 2017 by Teachoo

13. According to Section 3 of Union Territory Goods and Service Tax Act, 2017:
14. The Administrator may, by notification, appoint Commissioners and such other
class of officers as may be required for carrying out the purposes of this Act
and such officers shall be deemed to be proper officers for such purposes as
may be specified therein:

Provided that the officers appointed under the existing law shall be deemed to
be the officers appointed under the provisions of this Act.
 Section 7 UTGST - Levy and collection
Last updated at April 27, 2017 by Teachoo

According to Section 7 of Union Territory Goods and Service Tax Act, 2017:

1. Subject to the provisions of sub-section (2), there shall be levied a tax called

the Union territory tax on all intra-State supplies of goods or services or both,

except on the supply of alcoholic liquor for human consumption, on the value

determined under section 15 of the Central Goods and Services Tax Act and at

such rates, not exceeding twenty per cent., as may be notified by the Central

Government on the recommendations of the Council and collected in such

manner as may be prescribed and shall be paid by the taxable person.

2. The Union territory tax on the supply of petroleum crude, high speed diesel,

motor spirit (commonly known as petrol), natural gas and aviation turbine fuel

shall be levied with effect from such date as may be notified by the Central

Government on the recommendations of the Council.

3. The Central Government may, on the recommendations of the Council, by

notification, specify categories of supply of goods or services or both, the tax

on which shall be paid on reverse charge basis by the recipient of such goods or

services or both and all the provisions of this Act shall apply to such recipient

as if he is the person liable for

 paying the tax in relation to the supply of such goods or services or both.

4. The Union territory tax in respect of the supply of taxable goods or services or

both by a supplier, who is not registered, to a registered person shall be paid by

such person on reverse charge basis as the recipient and all the provisions of

this Act shall apply to such recipient as if he is the person liable for paying the

tax in relation to the supply of such goods or services or both.

5. The Central Government may, on the recommendations of the Council, by

notification, specify categories of services the tax on intra-State supplies of

which shall be

paid by the electronic commerce operator if such services are supplied through

it, and all the provisions of this Act shall apply to such electronic commerce

operator as if he is the supplier liable for paying the tax in relation to the supply

of such services: Provided that where an electronic commerce operator does not

have a physical presence in the taxable territory, any person representing such

electronic commerce operator for any purpose in the taxable territory shall be

liable to pay tax:

Provided further that where an electronic commerce operator does not have a

physical presence in the taxable territory and also he does not have a

representative in the said territory, such electronic commerce operator shall

 appoint a person in the taxable territory for the purpose of paying tax and such

person shall be liable to pay tax.

Section 9 UTGST - Payment of tax

Last updated at April 27, 2017 by Teachoo

According to Section 9 of Union Territory Goods and Service Tax Act, 2017:
The amount of input tax credit available in the electronic credit ledger of the
registered person on account of,—

a. integrated tax shall first be utilised towards payment of integrated tax and the

amount remaining, if any, may be utilised towards the payment of central tax

and State tax, or as the case may be, Union territory tax, in that order;

b. the Union territory tax shall first be utilised towards payment of Union territory

tax and the amount remaining, if any, may be utilised towards payment of

integrated tax;

c. the Union territory tax shall not be utilised towards payment of central tax

Section 10 UTGST - Transfer of input

tax credit
Last updated at April 27, 2017 by Teachoo

According to Section 10 of Union Territory Goods and Service Tax Act, 2017:
On utilisation of input tax credit of Union territory tax for payment of tax dues under
the Integrated Goods and Services Tax Act in accordance with the provisions of sub-
section (5) of section 49 of the Central Goods and Services Tax Act, as reflected in
the
valid return furnished under sub-section (1) of section 39 of the Central Goods and
Services Tax Act, the amount collected as Union territory tax shall stand reduced by
an amount equal to such credit so utilised and the Central Government shall transfer
an amount equal to the amount so reduced from the Union territory tax account to the
integrated tax account in such manner and within such time as may be prescribed.

Section 14 UTGST - Definitions

Last updated at April 27, 2017 by Teachoo

According to Section 14 of Union Territory Goods and Service Tax Act, 2017:
In this Chapter, unless the context otherwise requires,—

a. ‘‘advance ruling’’ means a decision provided by the Authority or the Appellate

Authority to an applicant on matters or on questions specified in sub-section (2)

of section 97 or sub-section (1) of section 100 of the Central Goods and

Services Tax Act, in relation to the supply of goods or services or both being

undertaken or proposed to be undertaken by the applicant;

b. ‘‘Appellate Authority’’ means the Appellate Authority for Advance Ruling

constituted under section 16;

c. ‘‘applicant’’ means any person registered or desirous of obtaining registration

under this Act;

 Section 18 UTGST - Transitional
arrangements for input tax credit
Last updated at April 27, 2017 by Teachoo

According to Section 18 of Union Territory Goods and Service Tax Act, 2017:

1. A registered person, other than a person opting to pay tax under section 10 of

the Central Goods and Services Tax Act, shall be entitled to take, in his

electronic credit ledger, credit of the amount of Value Added Tax and Entry

Tax, if any, carried forward in the return relating to the period ending with the

day immediately preceding the appointed day, furnished by him under the

existing law, not later than ninety days after the said day, in such manner as

may be prescribed:

Provided that the registered person shall not be allowed to take credit in the

following

circumstances, namely:—

i. where the said amount of credit is not admissible as input tax credit

under this Act; or

ii. where he has not furnished all the returns required under the existing law

for the period of six months immediately preceding the appointed day; or
 iii. where the said amount of credit relates to goods sold under such

exemption notifications as are notified by the Government:

Provided further that so much of the said credit as is attributable to any

claim related to section 3, sub-section (3) of section 5, section 6 or

section 6A or sub-section (8) of section 8 of the Central Sales Tax Act,

1956 that is not substantiated in the manner, and within the period,

prescribed in rule 12 of the Central Sales Tax (Registration and

Turnover) Rules, 1957 shall not be eligible to be credited to the

electronic credit ledger:

Provided also that an amount equivalent to the credit specified in the

second proviso shall be refunded under the existing law when the said

claims are substantiated in the manner prescribed in rule 12 of the

Central Sales Tax (Registration and Turnover) Rules, 1957.

2. A registered person, other than a person opting to pay tax under section 10 of

the Central Goods and Services Tax Act, shall be entitled to take, in his

electronic credit ledger, credit of the unavailed input tax credit in respect of

capital goods, not carried forward in a return, furnished under the existing law

by him, for the period ending with the day immediately preceding the
 appointed day in such manner as may be prescribed:

Provided that the registered person shall not be allowed to take credit unless the

said credit was admissible as input tax credit under the existing law and is also

admissible as input tax credit under this Act.

Explanation.—For the purposes of this section, the expression ‘‘unavailed input

tax credit’’ means the amount that remains after subtracting the amount of input

tax credit

already availed in respect of capital goods by the taxable person under the

existing law from the aggregate amount of input tax credit to which the said

person was entitled in respect of the said capital goods under the existing law.

3. A registered person, who was not liable to be registered under the existing law

or who was engaged in the sale of exempted goods or tax free goods or goods

which have

suffered tax at first point of their sale in the Union territory and the subsequent

sales of which are not subject to tax in the Union territory under the existing

law but which are liable to tax under this Act or where the person was entitled

to the credit of input tax at the time of sale of goods, shall be entitled to take, in

his electronic credit ledger, credit of the value added tax and entry tax, if any,
in respect of inputs held in stock and inputs contained in semi-finished or

finished goods held in stock on the appointed day subject to the following

conditions, namely:—

i. such inputs or goods are used or intended to be used for making taxable

supplies under this Act;

ii. the said registered person is eligible for input tax credit on such inputs

under this Act;

iii. the said registered person is in possession of invoice or other prescribed

documents evidencing payment of tax under the existing law in respect

of such

inputs; and

iv. such invoices or other prescribed documents were issued not earlier than

twelve months immediately preceding the appointed day:

Provided that where a registered person, other than a manufacturer or a

supplier of services, is not in possession of an invoice or any other

documents evidencing payment of tax in respect of inputs, then, such

registered person shall, subject to such conditions, limitations and

safeguards as may be prescribed, including that the said taxable person

shall pass on the benefit of such credit by way of reduced prices to the

recipient, be allowed to take credit at such rate and in such manner as

 may be prescribed.

4. A registered person, who was engaged in the sale of taxable goods as well as

exempted goods or tax free goods under the existing law but which are liable to

tax under

this Act, shall be entitled to take, in his electronic credit ledger,—

a. the amount of credit of the value added tax and entry tax, if any, carried

forward in a return furnished under the existing law by him in

accordance with the

provisions of sub-section (1); and

b. the amount of credit of the value added tax and entry tax, if any, in

respect of inputs held in stock and inputs contained in semi-finished or

finished goods held in stock on the appointed day, relating to such

exempted goods or tax free goods in accordance with the provisions of

sub-section (3).

5. A registered person shall be entitled to take, in his electronic credit ledger,

credit of value added tax and entry tax, if any, in respect of inputs received on

or after the appointed day but the tax in respect of which has been paid by the

supplier under the existing law, subject to the condition that the invoice or any

other tax paying document of the same was recorded in the books of account of
 such person within a period of thirty days from the appointed day:

Provided that the period of thirty days may, on sufficient cause being shown, be

extended by the Commissioner for a further period not exceeding thirty days:

Provided further that the said registered person shall furnish a statement, in

such manner as may be prescribed, in respect of credit that has been taken

under this sub-section.

6. A registered person, who was either paying tax at a fixed rate or paying a fixed

amount in lieu of the tax payable under the existing law shall be entitled to

take, in his

electronic credit ledger, credit of value added tax in respect of inputs held in

stock and inputs contained in semi-finished or finished goods held in stock on

the appointed day subject to the following conditions, namely:—

. such inputs or goods are used or intended to be used for making taxable

supplies under this Act;

i. the said registered person is not paying tax under section 10 of the

Central Goods and Services Tax Act;

ii. the said registered person is eligible for input tax credit on such inputs

under this Act;

 iii. the said registered person is in possession of invoice or other prescribed

documents evidencing payment of tax under the existing law in respect

of inputs; and

iv. such invoices or other prescribed documents were issued not earlier than

twelve months immediately preceding the appointed day.

7. The amount of credit under sub-sections (3), (4) and (6) shall be calculated in

such manner as may be prescribed.

Section 19 UTGST - Transitional

provisions relating to job work
Last updated at April 27, 2017 by Teachoo

According to Section 19 of Union Territory Goods and Service Tax Act, 2017:

1. Where any inputs received at a place of business had been desptached as such

or desptached after being partially processed to a job worker for further

processing, testing, repair, reconditioning or any other purpose in accordance

with the provisions of existing law prior to the appointed day and such inputs

are returned to the said place on or after the

appointed day, no tax shall be payable if such inputs, after completion of the

job work or otherwise, are returned to the said place within six months from the

appointed day:
 Provided that the period of six months may, on sufficient cause being shown,

be extended by the Commissioner for a further period not exceeding two

months:

Provided further that if such inputs are not returned within a period of six

months or the extended period from the appointed day, the input tax credit shall

be liable to be recovered in accordance with the provisions of clause (a) of sub-

section (8) of section 142 of the Central Goods and Services Tax Act.

2. Where any semi-finished goods had been despatched from any place of

business to any other premises for carrying out certain manufacturing processes

in accordance with the provisions of existing law prior to the appointed day and

such goods (hereinafter in this section referred to as ‘‘the said goods’’) are

returned to the said place on or after the appointed day, no tax shall be payable

if the said goods, after undergoing manufacturing processes or otherwise, are

returned to the said place within six months from the appointed day:

Provided that the period of six months may, on sufficient cause being shown,

be extended by the Commissioner for a further period not exceeding two

months:
 Provided further that if the said goods are not returned within a period specified

in this sub-section, the input tax credit shall be liable to be recovered in

accordance with the provisions of clause (a) of sub-section (8) of section 142 of

the Central Goods and Services Tax Act:

Provided also that the person despatching the goods may, in accordance with

the provisions of the existing law, transfer the said goods to the premises of any

registered person for the purpose of supplying therefrom on payment of tax in

India or without payment of tax for exports within six months or the extended

period, as the case may be, from the

appointed day

3. (3) Where any goods had been despatched from the place of business without

payment of tax for carrying out tests or any other process to any other premises,

whether registered or not, in accordance with the provisions of existing law

prior to the appointed day and such goods are returned to the said place of

business on or after the appointed day, no tax shall be payable if the said goods,

after undergoing tests or any other process, are returned to such place within six

months from the appointed day:

 Provided that the period of six months may, on sufficient cause being shown,

be extended by the Commissioner for a further period not exceeding two

months: Provided further that if the said goods are not returned within the

period specified in this sub-section, the input tax credit shall be liable to be

recovered in accordance with the provisions of clause (a) of sub-section (8) of

section 142 of the Central Goods and Services Tax Act:

Provided also that the person despatching the goods may, in accordance with

the provisions of the existing law, transfer the said goods from the said other

premises on payment of tax in India or without payment of tax for exports

within six months or the extended period, as the case may be, from the

appointed day.

4. The tax under sub-sections (1), (2) and (3) shall not be payable only if the

person despatching the goods and the job worker declare the details of the

inputs or goods held in stock by the job worker on behalf of the said person on

the appointed day in such form and manner and within such time as may be

prescribed