Union Territory GST

UT GST is another form of GST. Its main agenda is to attract tax from the Union territory. It has been introduced by GST Council in order to to complete the constitutional obligation which it says The Constitution (One Hundred and first Amendment) Act, 2016. It is purpose is to apply a collection of tax on every Intra UT supply of goods and services in the union territories. Tax property of this GST is similar to properties as that of SGST.

UTGST has taken its place. Since, SGST cannot fulfil the provision here and for the same. The Union Territory GST included in the Regime are

  • Chandigarh
  • Lakshadweep
  • Daman and Diu
  • Dadra and Nagar Haveli
  • Andaman and Nicobar Islands

Delhi and Puducherry are also the UTs of India but still they will enjoy benefits same as SGST. In these UTs the Parliament has rights to form laws with respect to any matter for any part of the territory of India.UTGST can forward to CGST in further approval. Here are some combination of taxes under GST.

Intra State- Supply of goods and/or services within a state – CGST + SGST

Intra UT- Supply of goods and/or services within Union Territories- CGST + UTGST

Inter-State/ Inter-UT- Supply of goods and/or services across States and/or Union Territories- IGST.

Supply within the Union Territory

This table depicts how supply is levied within the UT.

Particulars Amount
Good 100,000
CGST @ 6% 6000
UTGST @ 6% 60,000
Total  1,12,00
Supply outside the Union Territory
Particulars Amount
Good 100,000
IGST @ 12% 12,000
UTGST @ 6% 6000
Total  1,12,000

Tax systems similar to tax levied on supplies outside a state, IGST will be applicable on supplies outside a union territory.

Order of utilization
Input Tax Credit Set of against liability
UTGST UTGST and IGST (in this order)
Also, UTGST credit cannot be utilized to set-off CGST liability.



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