UTGST Rules, 2017 notified by CBEC for UTs of Andaman & Nicobar, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep

CBEC notifies the UTGST Rules, 2017 for UTs of Andaman & Nicobar Islands, Chandigarh, Dadra & Nagar Haveli, Daman & Diu and Lakshadweep, applicable w.e.f. 01/07/2017, relating to mutatis-mutandis adaptation of Central Goods and Services Tax (CGST) Rules, 2017, subject to certain modifications.

CBEC UT Tax Notification 5/2017 dt. 30/06/2017: CBEC Notifies the UTGST (Andaman and Nicobar Islands) Rules, 2017

CBEC UT Tax Notification 6/2017 dt. 30/06/2017: CBEC Notifies the UTGST (Chandigarh) Rules, 2017

CBEC UT Tax Notification 7/2017 dt. 30/06/2017: CBEC Notifies the UTGST (Dadra and Nagar Haveli) Rules, 2017

CBEC UT Tax Notification 8/2017 dt. 30/06/2017: CBEC Notifies the UTGST (Daman and Diu) Rules, 2017

CBEC UT Tax Notification 9/2017 dt. 30/06/2017: CBEC Notifies the UTGST (Lakshadweep) Rules, 2017

Commentary o UTGST Rules

The UTGST (Union Territory Goods and Services Tax) Rules, 2017, were notified by the Central Board of Excise and Customs (CBEC) to govern the implementation of the Goods and Services Tax (GST) in the Union Territories of Andaman & Nicobar Islands, Chandigarh, Dadra & Nagar Haveli, Daman & Diu and Lakshadweep. These rules were made effective from 1st July 2017.

The UTGST Rules, 2017, are largely based on the Central Goods and Services Tax (CGST) Rules, 2017, with certain modifications to adapt them to the specific requirements of the Union Territories. The objective behind the UTGST Rules is to ensure a seamless and uniform tax administration across all Union Territories, thereby promoting ease of doing business and minimizing tax-related disputes. Key aspects of the UTGST Rules, 2017 include:

i) Registration: The rules specify the conditions and procedure for obtaining UTGST registration, including mandatory registration for businesses with an annual turnover exceeding the specified threshold, voluntary registration and compulsory registration for certain categories of businesses.

ii) Tax Invoice, Credit and Debit Notes: The UTGST Rules, 2017, prescribe the format and content of tax invoices, credit notes and debit notes, along with the time limits for issuing these documents.

iii) Returns: The rules outline the various types of returns to be filed under UTGST, including monthly, quarterly and annual returns, as well as the procedure for filing them.

iv) Payment of Tax: The UTGST Rules provide the process for calculating and paying the tax due under UTGST, including the mechanism for utilizing input tax credit and determining the order of set-off.

v) Refunds: The rules specify the conditions under which a taxpayer can claim a refund under UTGST and the procedure for applying for and processing such refunds.

vi) Assessment and Audit: The UTGST Rules outline the assessment and audit procedures under UTGST, including provisions for self-assessment, scrutiny of returns, provisional assessment and audit by tax authorities.

vii) Advance Ruling: The rules provide a mechanism for taxpayers to seek an advance ruling on tax matters to avoid disputes and obtain clarity on the applicable tax treatment.

vii) Anti-profiteering Measures: The UTGST Rules include provisions to ensure that businesses pass on the benefits of reduced tax rates or input tax credit to consumers by way of commensurate reduction in prices.

The UTGST Rules, 2017, serve as a vital instrument in implementing the GST framework in the Union Territories, ensuring that businesses in these regions comply with the same tax regime as the rest of the country. This helps in achieving the broader objective of the GST system, which is to create a unified and simplified indirect tax structure across the country.