UTGST

UTGST means Union Territory Goods and Service Tax, and is an indirect tax that is collected when intra-state goods or services supplied, along with tax charged as under CGST ACT, 2017. Generally, intra-state supply is treated where the location of the supplier and the place of supply of goods or services are in the same Union Territory. Further, where the location of the supplier and the place of supplying goods or services are not in the same union territory it is treated as an inter-State supply of goods or services. Any goods or services that are transferred out of or brought in to a union territory will be chargeable under Integrated Goods and Services Tax (IGST). A combination of CGST and SGST/UTGST equals IGST which is imposed by the Central Government on all supplies which take place inter-state.

Features of UTGST Act 2017, are as per the following:

• Delhi, Puducherry, Jammu & Kashmir, and Ladakh, etc are also included in our list of Indian Union Territories.

• The 5 regions mentioned above are the ones where UTGST is applicable.

• UTGST is nothing but the Goods and Services Tax applicable to the goods and services are consumed in any or all of these regions.

• UTGST is not applicable anywhere else except these five regions.

• People living and consuming goods/services or involved in purchasing and supplies in these regions need to pay Union Territory GST in addition to the Central Goods and Services Tax (CGST) to respective state governments.

• To a certain extent, UTGST serves like SGST does in other Indian states.

• Puducherry and Delhi (also are union territories) that are exempted from UTGST but need to pay SGST as both have their respective governing bodies.