The Central Board of Indirect Taxes and Customs (CBIC) on October 19, 2023, issued a notification regarding the amendment to the No.11/2017-Union Territory Tax (Rate), dated June 28, 2017, related to the rate of Union territory tax for the supply of services under UTGST Act 2017
This shall come into force on October 20, 2023
The following has been amended namely: -
• In the Table-
(i) against serial number 8, in column (3), in item (vi), after the conditioning in column (5) against the rate of 2.5 percent, the following condition shall be inserted, namely: -
“Provided further that where the supplier of input service in the same line of business charges Union Territory tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken.
(ii) against serial number 10, in column (3), in item (i), after the conditioning column (5) against the rate of 2.5 percent, the following condition shall be inserted, namely: -
“Provided further that where the supplier of input service in the same line of business charges Union Territory tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken.
[Notification No. 12/2023-Union Territory Tax (Rate)]
