{"id":12025,"date":"2024-07-26T19:57:14","date_gmt":"2024-07-26T14:27:14","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=12025"},"modified":"2025-03-24T10:09:28","modified_gmt":"2025-03-24T04:39:28","slug":"what-is-utgst","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/what-is-utgst\/","title":{"rendered":"What is UTGST (Union Territory Goods and Services Tax)?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d6a40cf2042\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d6a40cf2042\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/what-is-utgst\/#What-is-UTGST\" >What is UTGST?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/what-is-utgst\/#List-of-UTGST-States\" >List of UTGST States<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/what-is-utgst\/#When-is-UTGST-applicable\" >When is UTGST applicable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/what-is-utgst\/#How-to-Calculate-UTGST\" >How to Calculate UTGST?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/what-is-utgst\/#UTGST-Formula\" >UTGST Formula<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/what-is-utgst\/#UTGST-Examples\" >UTGST Examples<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/what-is-utgst\/#Exemption-from-UTGST\" >Exemption from UTGST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/what-is-utgst\/#UTGST-Slab-Rates\" >UTGST Slab Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/learn\/what-is-utgst\/#Benefits-of-UTGST\" >Benefits of UTGST<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-UTGST\"><\/span><b>What is UTGST?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>UTGST stands for Union Territory Goods and Services Tax, is the equivalent of SGST for Union Territories. While SGST is levied by state governments on intra-state transactions, UTGST is imposed by Union Territory governments on the supply of goods and services within their respective territories.<\/p>\n<p><em><strong>Related Read: <a href=\"https:\/\/razorpay.com\/learn\/what-is-sgst\/\">What is SGST?<\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"List-of-UTGST-States\"><\/span><b>List of UTGST States<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here is a complete list of UTGST States in India:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<h3><b>Union Territory<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>Code<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>Abbreviation<\/b><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Andaman and Nicobar Islands<\/span><\/td>\n<td><span style=\"font-weight: 400;\">35<\/span><\/td>\n<td><span style=\"font-weight: 400;\">ANI<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Chandigarh<\/span><\/td>\n<td>4<\/td>\n<td><span style=\"font-weight: 400;\">CHD<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Dadra and Nagar Haveli and Daman and Diu<\/span><\/td>\n<td>26<\/td>\n<td><span style=\"font-weight: 400;\">DNDD<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Lakshadweep<\/span><\/td>\n<td>31<\/td>\n<td><span style=\"font-weight: 400;\">LD<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Delhi<\/span><\/td>\n<td>07<\/td>\n<td><span style=\"font-weight: 400;\">DL<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Puducherry<\/span><\/td>\n<td>34<\/td>\n<td><span style=\"font-weight: 400;\">PY<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"When-is-UTGST-applicable\"><\/span><b>When is UTGST applicable?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">UTGST applies when goods or services are supplied within a Union Territory (intra-UT). The output liabilities of a taxable person under the UTGST Act are often described as follows:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<h3><b>Supply Type<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>Output tax Liability<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>Section Applicable<\/b><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Supplies made in a Union Territory without a governing body<\/span><\/td>\n<td><span style=\"font-weight: 400;\">UTGST and CGST (within the UT border)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">As per Section 8(1) and 8(2) of the IGST Act<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Supplies made between two Union Territories without a governing body<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Integrated GST (Between two or more UT)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">As per Section 7(1) and 7(3) of the IGST Act<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Supplies arranged between a Union Territory without a governing body and a State or UT with the governing body.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Integrated GST<\/span><\/td>\n<td><span style=\"font-weight: 400;\">As per Section 7(1) and 7(3) of the IGST Act<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"How-to-Calculate-UTGST\"><\/span>How to Calculate UTGST?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Calculating UTGST is straightforward.<\/p>\n<p><strong>Here&#8217;s a basic breakdown:<\/strong><\/p>\n<p><strong>STEP 1: Determine the taxable value:<\/strong> This is the value of the goods or services sold.<br \/>\n<strong>STEP 2: Identify the UTGST rate:<\/strong> The UTGST rate is determined by the Central government and is usually the same as the SGST rate for the corresponding state.<br \/>\n<strong>STEP 3: Calculate the UTGST amount:<\/strong> Multiply the taxable value by the UTGST rate.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"UTGST-Formula\"><\/span>UTGST Formula<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The formula for calculating UTGST is:<\/p>\n<p><strong>UTGST = (Value of Goods) x (UTGST Rate\/100)<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"UTGST-Examples\"><\/span><b>UTGST Examples<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Consider a business in Karnataka, a state in India, selling goods worth \u20b910,000. Under GST, the taxes applied are <a href=\"https:\/\/razorpay.com\/learn\/what-is-cgst\/\">Central GST (CGST)<\/a> and State GST (SGST). If the GST rate is 18%, it is split into 9% CGST and 9% SGST. <\/span><\/p>\n<p><strong>Therefore, the business would charge:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CGST: \u20b910,000 x 9% = \u20b9900<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">SGST: \u20b910,000 x 9% = \u20b9900<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total GST: \u20b9900 (CGST) + \u20b9900 (SGST) = \u20b91,800<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Now, let&#8217;s look at a similar business in the Union Territory of Lakshadweep. Since Lakshadweep does not have its own legislature, instead of SGST, UTGST is applied. For the same goods worth \u20b910,000 with an 18% GST rate, the breakdown would be:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CGST: \u20b910,000 x 9% = \u20b9900<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">UTGST: \u20b910,000 x 9% = \u20b9900<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total GST: \u20b9900 (CGST) + \u20b9900 (UTGST) = \u20b91,800<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In both cases, the total GST amount is \u20b91,800, but the type of state-level tax differs. In Karnataka, it is SGST, while in Lakshadweep, it is UTGST.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Exemption-from-UTGST\"><\/span><b>Exemption from UTGST<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are certain exemptions from UTGST, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The supply of goods and services to the Central Government, a state government, or a local authority<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The supply of goods and services that are exported outside India<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The supply of goods and services that are zero-rated or tax-free<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Under Section 8 of the UTGST Act, the Central Government has the authority to grant exemptions from UTGST.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"UTGST-Slab-Rates\"><\/span><b>UTGST Slab Rates<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The UTGST rates are 0%, 5%, 12%, 18% and 28%. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s a detailed table explaining UTGST Rates<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<h3><b>UTGST Slab Rate<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>Examples of Goods and Services<\/b><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Basic food items (e.g., rice, wheat), unprocessed agricultural products<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Packaged food items, certain essential goods (e.g., tea, coffee)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">12%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Processed food items, some consumer goods (e.g., branded apparel, footwear)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Services (e.g., restaurant services, telecom services), most goods (e.g., electronic items, furniture)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">28%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Luxury items and sin goods (e.g., high-end cars, tobacco products)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><em><strong>Read More About: <a href=\"https:\/\/razorpay.com\/learn\/gst-rates-goods-and-service-tax-rates-slabs\/\">GST Rate<\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits-of-UTGST\"><\/span><b>Benefits of UTGST<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h4><b>1. Simplified Tax Structure<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">UTGST, along with CGST, creates a simpler tax framework within Union Territories. This reduces complexity and makes the tax process more straightforward for businesses.<\/span><\/p>\n<h4><b>2. Revenue Sharing with Central Government<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">UTGST ensures that Union Territories receive their share of tax revenue, leading to better resource allocation and development within these regions.<\/span><\/p>\n<h4><b>3. Consistency Across the Nation<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The implementation of UTGST maintains a consistent tax system across India, helping businesses operate efficiently without dealing with varying tax regimes.<\/span><\/p>\n<h4><b>4. Supports Economic Integration<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">UTGST helps integrate Union Territories into the national economy by ensuring they are part of the unified tax system, promoting inclusive growth.<\/span><\/p>\n<h4><b>5. Less Burden on Consumers<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">By streamlining the tax process and avoiding multiple layers of taxation, UTGST helps reduce the overall tax burden on consumers in Union Territories, making goods and services more affordable.<\/span><\/p>\n<h3><b>FAQs<\/b><\/h3>\n<h3><b>1. What is the full form of UTGST?<\/b><\/h3>\n<p>UTGST<span style=\"font-weight: 400;\"> stands for <\/span>Union Territory Goods and Services Tax<span style=\"font-weight: 400;\">. It is a component of the GST system in India that applies specifically to Union Territories without their own legislatures.<\/span><\/p>\n<h3><b>2. Who is liable to pay UTGST?<\/b><\/h3>\n<p>Businesses and individuals<span style=\"font-weight: 400;\"> who supply goods or services within a Union Territory are liable to pay UTGST. This includes both sellers and service providers operating in these regions, who must collect UTGST from their customers and remit it to the government.<\/span><\/p>\n<h3><b>3. Who collects UTGST?<\/b><\/h3>\n<p>The Union Territory government collects the revenue generated from UTGST. UTGST replaces SGST in Union Territories.<\/p>\n<h3><b>4. How can I claim a refund under UTGST?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">To claim a refund under UTGST, businesses need to submit a refund application via the <a href=\"https:\/\/www.gst.gov.in\/\" target=\"_blank\" rel=\"noopener\">GST portal<\/a>, specifying the amount of UTGST they wish to recover. They must provide all necessary documentation, including tax invoices, proof of payment, and any other relevant records. The application will be reviewed by tax authorities, and once it is approved, the refund will be processed and credited to the business\u2019s account.<\/span><\/p>\n<h3><b>5. How does the input tax credit work under UTGST?<\/b><\/h3>\n<p>Input tax credit (ITC) under UTGST<span style=\"font-weight: 400;\"> works similarly to other GST components. Businesses can claim ITC for UTGST paid on inputs used in the course of their business. This allows them to offset UTGST on their purchases against the UTGST they collect on sales.\u00a0<\/span><\/p>\n<p><em><b>Related Read: <\/b><a href=\"https:\/\/razorpay.com\/learn\/what-is-cgst-sgst-igst\/\"><b>What is SGST, CGST, IGST &amp; UTGST?<\/b><\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is UTGST? UTGST stands for Union Territory Goods and Services Tax, is the equivalent of SGST for Union Territories. While SGST is levied by state governments on intra-state transactions, UTGST is imposed by Union Territory governments on the supply of goods and services within their respective territories. Related Read: What is SGST? List of<\/p>\n","protected":false},"author":151156613,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3435],"tags":[2039,3801],"class_list":{"0":"post-12025","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-gst-tax-government","7":"tag-gst","8":"tag-utgst"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12025","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156613"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=12025"}],"version-history":[{"count":6,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12025\/revisions"}],"predecessor-version":[{"id":16595,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12025\/revisions\/16595"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=12025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=12025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=12025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}