Term UTGST under GST

Posted on 10 June 2022 Category : GST terms

Meaning of UTGST under GST

The details about UTGST under GST are explained here.

UTGST (Union Territory Goods and Service Tax):

UTGST would be levied on the local supply of goods within the Union Territory.

As per Article 246(4) of Constitution, Parliament has powers to make laws with respect to any matter for any part of the territory of India, which is not included in the State, including the matters enumerated in State List.

Accordingly after approval of GST Council, the Central Government shall pass the UTGST Law in the Parliament.

When the supply of goods or services occurred within the Union Territory, then Central Government empowered to levy equal of portion of CGST & UGST on those supplies. And tax portion of the respective Union Territory will be settled by the central government on timely basis.

Credit of UTGST

The UTGST paid on supply of service to be set off against the output UTGST.

When an item is procured for resale, then credit of UTGST is available for all items.

When inputs and consumables are procured for the manufacture of goods on which UTGST is paid, then credit of UTGST is available for all items.

UTGST Credit would be allowed first to be utilised against UTGST and then IGST.

The information on UTGST under GST is detailed above. Comment below your thoughts on UTGST under GST.

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