What is Union Territory GST (UTGST)?

The term 'UTGST' stands for the 'Union Territory Goods and Services Tax', or simply, the Union Territory GST. The UTGST Bill was one of the four GST bills passed by the government of India on April 12, 2017. This union territory gst is levied on supplies of goods/services within a union territory, just like the SGST in case of intra-state supplies. This webpage offers more useful information about UTGST, including answer to the common question "what is union territory gst?" in paragraphs given below.

Today, UTGST is levied on supplies of goods and services within each of the following union territories of India ---- Chandigarh, Lakshadweep, Daman and Diu, Dadra and Nagar Haveli, and Andaman & Nicobar Islands. For the reasons mentioned below, this UTGST is not used for supplies of goods and services within Delhi or Puducherry (the capital city of which is Pondicherry).

According to the constitution of India, a Union Territory falls directly under the governance of the Central or Union Government of India. This basic fact differentiates a Union Territory from a State, which has its own legislature and elected government. As Delhi and Puducherry have their own legislature and elected governments, these two union territories are regarded as semi-states, and hence, the SGST Act does apply to Delhi and Puducherry. Consequently, SGST is levied on the supplies of goods and services within any of these two self-governed union territories, like various other States of India. Thus, excepting Delhi and Puducherry, union territory GST is levied (in place of SGST) in these all other union territories of India mentioned above.

Thus, on supplies of goods & services within any union territory, levied is the collective tax of Central GST and UTGST. And, on supplies from a union territory to another union territory or a State, applicable is the collective tax of Integrated GST (IGST). Here, it may be just mentioned that, on supplies within any State, the collective tax levied is the sum of CGST and SGST.