GST laws for Union Territories- UTGST

GST laws for Union Territories- UTGST



Union territories in India have their origin as an administrative division. unlike states, Union territories have their different legislative assemblies and are often ruled by central government thus the name Union Territories.  There are seven Union territories as of now and they are:

  1. Andaman and Nicobar Islands
  2. Chandigarh
  3. Daman and Diu
  4. Lakshadweep
  5. Pondicherry
  6. Dadra and Nagar Haveli
  7. Delhi

Delhi and Pondicherry have their own elected legislative assemblies and the executive council of ministers with partially state-like function.

But there are definitely tax structures for them too, but as the working and administration of Union territories are different as state thus the tax structure under GST is also different for them. Therefore a different law for the Union territories in India is being discussed that is UTGST. The purpose of UTGST is to monitor the inter and intra supply of goods and services that has a provision of tax collection.

GST council has taken up a team for the implementation of UTGST in The Union Territories of India. But Delhi and Pondicherry will enjoy the tax structure of SGST where as Chandigarh, Lakshadweep, Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli are the Union Territories where UTGST will be implemented.

  • For the supply of Goods and Services within the Union territories CGST and UTGST will be imposed
  • For the supply of goods and services outside the Union territories to any different state or any other Union territory, IGST will be imposed.

These are with respect to the latest council meet of the GST authorities for a different tax structures of Union Territories.

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