UT GST

The GST council has included the UTGST in order to complete the constitutional obligation which says The Constitution (One Hundred and first Amendment) Act, 2016, has added a new clause, namely Clause 26B on “State” in Article 366. As per this clause, “State” with reference to Articles 246A, 268, 269, 269A, and 279A includes a Union territory with Legislature yet even ‘State’ for the purposes of GST, added a Union territory with Legislature.

The purpose of UTGST bill is to apply a collection of tax on every Intra UT supply of goods and service in the union territories in absence of legislature and has similar properties as that of SGST. So all in all, the SGST cannot fulfill the needed provision here and for the same UTGST has taken its place. GST council has introduced the UTGST which will continue to provide benefits as same as SGST.

Various combination of taxes can be as seen after the implementation GST like:

For Supply of goods and/or services within a state (Intra-State): CGST + SGST;
For Supply of goods and/or services within Union Territories (Intra-UT): CGST + UTGST;
For Supply of goods and/or services across States and/or Union Territories (Inter-State/ Inter-UT): IGST