Levy and collection
UTGST s.7, UTGST Act
Straight from CBIC
Official source, not a summary of a summary
Full text included
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Amendment history
See what changed, and when
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In one line
The charging section: UTGST is levied on every intra-Union-territory supply, on the value fixed by section 15 of the CGST Act, at rates up to 20 per cent notified on the Council’s recommendation, alongside an equal CGST. It carries the reverse charge and the section 9(5) e-commerce liability, and excludes alcoholic liquor for human consumption. Petroleum products enter the levy only from a date the Council recommends.
What this means in practice
The parts that actually decide cases — the things a practitioner checks first.
UTGST applies only in the Union territories WITHOUT a legislature. Delhi, Puducherry and Jammu and Kashmir have their own SGST Acts, so a supply there attracts CGST plus SGST, not UTGST – getting this wrong misstates the tax heads on the invoice.
The rate ceiling in section 7(1) mirrors the CGST ceiling, and the same rate notifications apply as UT Tax (Rate) notifications with the same numbers.
Questions people actually ask
Real questions we get on this provision, answered straight.
Our client supplies within Chandigarh. Which taxes apply?+
CGST plus UTGST, because Chandigarh is a Union territory without a legislature. In Delhi or Puducherry the same supply would carry CGST plus SGST. The rate is identical – only the second head changes.
How this provision is built
The skeleton, clause by clause — useful when a notice cites a specific sub-clause.
The exact words of the law
2,957 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
Read the full provision+
(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 2 [ and un-denatured extra neutral alcohol or rectified spirit which is used for manufacture 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 percent., 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. 1 [(4)The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of 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 such supply of 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.
What changed, and when
The amendment trail, newest first — because the version that applies to your case depends on the period.
2024-08-16 · Substitutedby
Substituted by section 155 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024 .
2019-02-01 · Substitutedvi
Substituted vide s. 2 of the Union Territory Goods and Services Tax (Amendment) Act, 2018 w.e.f. 1st February, 2019 for: "(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 perso
Where this comes from
Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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