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Section 7 of UTGST – Levy and collection under Union Territory GST Act
(1) Subject to the provisions of sub-section (2), there shall be levied a tax called the Union territory tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act and at such rates, not exceeding twenty per cent., as may be notified by the Central Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person. (2) The Union territory tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Central Government on the recommendations of the Council. (3) The Central Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. (4) The Union territory tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. (5) The Central Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services: Provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax: Provided further that where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax.
Impact Analysis
Cap rated increased to 40% from existing 28%. It was mentioned that for change of rates need not to go to the Parliament again. GST Council have been authorized. However, supply of alcoholic liquor for human consumption is specifically excluded. Provision added w.r.t. levy of tax petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel at future date on recommendation of GST Council. Reverse charge will be applicable to UTGST also on the supply made by specific categories of goods or services or both. Reverse charge of UTGST will be applicable when goods or services received from unregistered person. It is pertinent to note that no exemption is available if there are inter-state supplies. Situation may arise when supplies are received from such person who has not quoted IGST Number on Tax Invoice, since any person who is involved in inter-state sale have to obtain the registration compulsorily. Any supplies made through E-Commerce operator, E-Commerce operator will be liable to pay UTGST on services as may be specified under the notification. E-Commerce will have to obtain compulsorily registration in India even though his physical presence may not be in taxable territory
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