Union Territory Goods and Services Tax (Amendment) Bill, 2018

Aug 08, 2018 | by Avantis RegTech Legal Research Team


The Union Territory Goods and Services Tax Act, 2017 was enacted with a view to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Union territories. The Act provides for certain provisions for smooth transition of existing taxpayers to new goods and services tax regime. However, the new tax regime has been facing certain difficulties in respect of matters relating to supply of taxable goods or services by a supplier, who is not registered and due to certain restrictions in the utilisation of input tax credit of Union territory tax towards payment of integrated tax.

To overcome those difficulties and in order to facilitate compliance with the law, improve the ease of doing business and to remove difficulties in the implementation of the Act, it is proposed to amend the Union Territories Goods and Services Tax Act, 2017. Therefore on August 07, 2018, the Union Territory Goods and Services Tax (Amendment) Bill, 2018 was introduced in the Lok Sabha.

The proposed Union Territory Goods and Services Tax (Amendment) Bill, 2018, inter alia, provides for the following, namely:—

(i)                  to amend Section 7 of the Act so as to empower the Central Government to notify classes of registered persons to pay the tax on reverse charge basis in respect of receipt of supplies of certain specified categories of goods or services or both from unregistered suppliers;

(ii)                to amend Section 9 of the Act so as to provide that input tax credit on account of the Union territory tax shall be utilised towards payment of integrated tax only when the balance of the input tax credit on account of central tax is not available for payment of integrated tax; and

(iii)               to insert new Sections 9A and 9B relating to "Utilisation of input tax credit" and "Order of utilisation of input tax credit".

[BILL No. 145 of 2018]

URL: http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/145_2018_LS_Eng.pdf


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