Union Territory GST notification imposes rate on specified construction materials, applying to intra State supplies under the Schedule.
Notification imposes a 6 per cent Union Territory GST on intra State supplies of specified construction materials listed by tariff entries and descriptions in the Schedule, directs application of Customs Tariff interpretative rules to the Schedule, aligns undefined terms with GST enactments, and states the notification takes effect on the 22nd day of September, 2025.

Exemption from UTGST on specified intra State goods, removing Union territory tax for listed supplies effective from notification.
Exempts from Union Territory Goods and Services Tax (UTGST) the intra State supply of goods specified in the Schedule, covering tariff items and descriptive entries listed, subject to specified exclusions (including pre packaged and labelled goods in certain headings), conditional supplies such as lotteries and government grant funded transfers, and further defined terms. The Schedule is supported by interpretative rules applying Customs Tariff nomenclature and includes Annexure I (specified drugs) and Annexure II (indigenous musical instruments).

Union Territory tax rate schedules set varied GST slabs for intra-State goods supplies, with classification rules and packaging-based conditions.
Union Territory tax is notified on intra-State supplies of goods by reference to appended rate schedules, with rates of 2.5%, 9%, 20%, 1.5%, 0.125%, 0.75% and 14% applying to the goods described in the corresponding entries. The notification supersedes the earlier union territory tax rate notification, subject to things done or omitted before supersession, and operates from 22 September 2025. It also provides definitions for unit container and pre-packaged and labelled, and applies Customs Tariff interpretive rules for classification.

Concessional UTGST for specified bricks conditional on non availing and reversal of input tax credit for those supplies.
Grants a reduced Union Territory GST rate for specified tariff items covering certain bricks and related products, conditional on suppliers not availing input tax credit for goods or services used exclusively for those supplies and reversing any partly claimed input tax as if the supply were exempt under sub section (2) of section 17 of the Central Goods and Services Tax Act and the rules thereunder; tariff entries are to be interpreted by reference to the First Schedule to the Customs Tariff Act.

GST exemption on specified COVID medicines reduces Union territory tax rates for listed drugs during a limited relief period.
The Central Government exempts specified COVID medicines from Union territory tax to the extent tax exceeds the reduced rates listed; the schedule names each medicine and prescribes either a nil or a reduced rate, and the exemption operates for a defined limited period stated in the notification.

Concessional UTGST rates for Covid 19 relief supplies set, reducing tax burdens on specified medical goods and equipment.
The Central Government, under the Union Territory Goods and Services Tax Act, 2017, exempts the portion of UT tax exceeding specified rates for listed Covid 19 relief supplies by tariff heading - including medical grade oxygen, specified drugs, testing and diagnostic kits, sanitizers, ventilatory and oxygen equipment, pulse oximeters and ambulances - prescribing the applicable UTGST rate or nil rate against each item and making the concessional regime operative up to and inclusive of 30th September 2021.

Grant of liquor licence not a supply - licence and application fees excluded from GST when charged by the State.
Grant of alcoholic liquor licences by State Governments, where consideration is received as a licence fee or application fee by whatever name, is neither a supply of goods nor a supply of service for purposes of the Union Territory Goods and Services Tax Act read with the Central Goods and Services Tax Act; this implements the GST Council recommendation excluding licence and application fees for alcoholic liquor from GST when undertaken by the State as a public authority, and the notification has retrospective effect subject to a bar on refunds of tax already collected.

Tax exemption for FAO project supplies: UTGST waived upon officer certification for goods used in listed projects.
Exempts goods supplied to the Food and Agricultural Organisation for execution of specified projects from the whole of the Union territory tax, conditional on certification by an officer not below the rank of Deputy Secretary in the Ministry of Agriculture and Farmers Welfare that (i) the quantity and description of the goods and (ii) that the goods are intended for use in execution of the listed projects.

Tax-free retail refunds entitlement for departure-area airport outlets permits refund of union territory tax on inward supplies.
Retail outlets in the departure area of an international airport beyond immigration counters making tax-free supplies to outgoing international tourists are specified as entitled to claim refund of applicable union territory tax paid on inward supplies, subject to the conditions in rule 95A of the Central Goods and Services Tax Rules, 2017; "outgoing international tourist" means a non-resident staying not more than six months for legitimate non-immigrant purposes.

Reverse charge mechanism: promoters to pay tax on specified inward supplies from unregistered sellers, including cement and capital goods.
Notifies reverse charge under section 7(4) UTGST Act for supplies received from unregistered suppliers by promoters: (i) shortfall supplies required to be purchased for construction of a project, (ii) cement under chapter heading 2523, and (iii) capital goods supplied for construction on which tax is payable at prescribed rates; defines promoter, project, REP, RREP and FSI; effective from 1 April 2019.

Reverse charge on development rights and FSI makes promoters liable to pay Union Territory GST by project completion or first occupation.
Notification makes specific promoters liable to pay Union Territory GST when development rights or FSI are acquired against construction services or monetary/upfront consideration; tax is payable by the promoter in the tax period not later than that in which the project completion certificate is issued where required or the date of first occupation, whichever is earlier. Definitions for apartment, promoter, project, REP, RREP, and FSI follow the Real Estate (Regulation and Development) Act, and covered services remain subject to reverse charge as per the relevant rate notification.

Composition scheme: small registered suppliers may pay consolidated tax without collecting tax or claiming input tax credit.
Notification allows registered persons with aggregate turnover up to fifty lakh rupees in the preceding financial year to opt for a composition scheme under which Union Territory tax is levied at the notified reduced rate on intra State supplies. Eligible persons must meet specified exclusions, may not collect tax from recipients, cannot claim input tax credit, must issue a bill of supply with a prescribed declaration, and must pay tax on inward supplies as applicable. Those who have availed input tax credit and opt into the scheme must remit equivalent credit for inputs and capital goods, after which remaining credit lapses.

Exemption of Union Territory tax on nominated agency supply of precious metals to registered persons subject to export compliance.
Exemption is granted for intra State supplies of gold, silver or platinum in Chapter 71 when supplied by a Nominated Agency under the Export Against Supply scheme to a registered person, exempting such supplies from the whole of the Union territory tax under section 7, subject to compliance with the Foreign Trade Policy and Handbook of Procedures, timely export of jewellery from the supplied metals with submission of export documentation, and payment by the Nominated Agency of tax plus interest where proof of export is not produced.

Concessional UTGST rate for specified handicraft goods reduces union territory tax on intra state supplies to notified levels.
Prescribes concessional UTGST rates by exempting intra state supplies of specified handicraft goods from UTGST to the extent the tax exceeds the notified rates; eligibility is determined by tariff classification and a descriptive definition of "handicraft goods," and the Table lists the covered tariff items, descriptive goods labels and corresponding concessional rates, with amendments to entries permitted by subsequent notifications.

Concessional UTGST on used vehicles taxes only the supplier margin at prescribed rates, excluding supplies with input tax credit.
Concessional UTGST limits tax on specified old and used motor vehicles to the amount calculated at the prescribed rate on the supplier's margin. Margin for depreciated assets equals consideration less depreciated value; otherwise it is selling price less purchase price, with negative margins ignored. The concession is inapplicable where the supplier has availed input tax credit, CENVAT, VAT credit or other tax credits on the goods, and vehicle classification follows the Motor Vehicles Act and related rules.

UTGST exemption for license or lease services to explore or mine petroleum where consideration is Central Government's share of profit petroleum.
The Central Government exempts from Union territory tax the intra State supply of services by way of grant of license or lease to explore or mine petroleum crude or natural gas to the extent the tax is leviable on the consideration paid to the Central Government that is defined in the contract as the Central Government's share of profit petroleum.

Timing of UTGST liability: tax arises when property possession or rights are conveyed to the supplier of development rights.
The notification treats suppliers exchanging development rights for construction services (and vice versa) as subject to a timing rule: UT tax liability arises when the developer or builder transfers possession or rights in the constructed property to the supplier of development rights by executing a conveyance deed, allotment letter or similar instrument.

UTGST export concession for intra State supplies: concessional tax treatment subject to invoice, export, documentation and transport conditions.
Exemption permits a registered supplier to levy Union Territory GST on intra State taxable goods supplied to a registered recipient for export at a concessional effective rate, conditional on supply on a tax invoice, export within the stipulated period, recording supplier GSTIN and invoice number in the shipping bill or bill of export, recipient registration with an Export Promotion Council or recognised Commodity Board, order placement at concessional rate with notice to the supplier's jurisdictional tax officer, prescribed movement to port or registered warehouse, documentary endorsements and warehouse acknowledgements where aggregation occurs, and furnishing of shipping bill and export filing proof to supplier and jurisdictional officer.

Reduced UTGST rate for unit packed food for free distribution enables concessional intra State supply subject to certification.
A concessional Union Territory GST rate is applied to intra State supplies of food preparations in unit containers meant for free distribution to economically weaker sections, including Fortified Rice Kernel and related food inputs, provided the supplier furnishes a certificate from an officer not below Deputy Secretary confirming free distribution under a government approved programme within five months of supply or such extended period as the competent tax officer allows.

Reduced union territory GST on leased motor vehicles applies when vehicles were purchased and leased before GST implementation.
UTGST on motor vehicles supplied on lease prior to 1 July 2017 is fixed at sixty five percent of the union territory tax otherwise applicable, subject to conditions: the vehicle must have been purchased and leased before 1 July 2017; the supplier must be registered and must not have availed input tax credit of central excise, VAT or other taxes on the vehicle.