[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
SUBSECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 12/2023- Union Territory Tax (Rate)
New Delhi, the 19th October, 2023

G.S.R......(E).-In exercise of the powers conferred by sub-sections (1), (3) and (4) of section 7, sub-section
(1) of section 8, clause (iv), clause (v) and clause (xxvii) of section 21 of the Union Territory Goods and
Services Tax Act, 2017 (14 of 2017), read with sub-section (5) of section 15, sub-section
(1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the
Central Government, on the recommendations of the Council, and on being satisfied that it is
necessary in the public interest so to do, hereby makes the following further amendments in the notification
of the Government of India, in the Ministry of Finance (Department of Revenue) No.11/2017-Union Territory Tax
(Rate),dated the 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub section (i), vide number G.S.R. 702(E), dated the 28th June, 2017, namely:-

In the said notification, -

(A) in the Table,

(i) against serial number 8, in column (3), in item (vi), after the condition 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.

Illustration: ‘A’ engages ‘B’ for transport from New Delhi to Jaipur in a motor cab for Rs.
1000. ‘B’, for supplying the said service, hires a motor cab with operator from ‘C’ for Rs.
800. ‘C’ charges ‘B’ Union Territory tax at the rate of 6% (Rs. 48). If ‘B’ charges ‘A’
Union Territory tax at the rate of 2.5%, he shall be entitled to take input tax credit on the
input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5%
of Rs. 800) and not Rs. 48.”;

(ii) against serial number 10, in column (3), in item (i), after the condition 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.
Illustration: ‘A’ engages ‘B’ for transport from New Delhi to Jaipur in a motor cab for Rs.
1000. ‘B’, for supplying the said service, hires a motor cab with operator from ‘C’ for Rs.
800. ‘C’ charges ‘B’ Union Territory tax at the rate of 6% (Rs. 48). If ‘B’ charges ‘A’
Union Territory tax at the rate of 2.5%, he shall be entitled to take input tax credit on the
input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5%
of Rs. 800) and not Rs. 48.”;

(iii) against serial number 34, -
(a) in column (3), in item (iv), for the words “totalisator or a license to” , the words
“licensing a” shall be substituted;

(b) in column (3), item (v) and the entries relating thereto shall be omitted;

(B) in the Annexure: Scheme of Classification of Services,-

(i) serial number 696 and the entries relating thereto shall be omitted;

(ii) serial number 698 and the entries relating thereto shall be omitted.

2. This notification shall come into force with effect from the 20th
day of October, 2023.

[F.No. CBIC-190354/195/2023-TO (TRU-II)-CBEC]
(Rajeev Ranjan)
Under Secretary to the Government of India

Note: -The principal notification number 11/2017 -Union Tax (Rate), dated the 28th June, 2017 was published in the
Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) ,vide number G.S.R. 702 (E), dated the 28th June,
2017 and was last amended vide notification number 06/2023-Union Tax (Rate), dated the 26th July, 2023 published
in the Gazette of India, Extraordinary, Part II , Section 3 , Sub-section (i) vide number G.S.R. 539(E), dated the 26th
July, 2023.