The Union Territory Goods and Services Tax Act, 2017 governs GST on intra-territory supplies in UTs without Legislature. With 26 sections and 11 chapters, it mirrors the CGST/SGST framework but is administered by the Central Government.
Chandigarh
Admin: UT Administrator (Governor of Punjab) | Tax: UTGST + CGST
Lakshadweep
Admin: UT Administrator | Tax: UTGST + CGST
Dadra & Nagar Haveli and Daman & Diu
Admin: UT Administrator | Tax: UTGST + CGST
Andaman & Nicobar Islands
Admin: Lieutenant Governor | Tax: UTGST + CGST
Ladakh
Admin: Lieutenant Governor | Tax: UTGST + CGST
Delhi
Delhi GST Act, 2017 — Has own SGST Act (not UTGST)
Puducherry
Puducherry GST Act, 2017 — Has own SGST Act (not UTGST)
Jammu & Kashmir
J&K GST Act, 2017 — Has own SGST Act since 2019 reorganization
Short title, extent, commencement, and definitions. Applies to Union Territories without Legislature — Chandigarh, Lakshadweep, Dadra & Nagar Haveli and Daman & Diu, Andaman & Nicobar Islands, and Ladakh.
Officers under this Act — Commissioner of UTGST, Additional/Joint/Deputy/Assistant Commissioner. Central Government appoints UTGST officers with same powers as SGST officers.
Section 5: UTGST levied on all intra-UT supplies at rates not exceeding 20%. Collected by the Central Government. Section 7: Composition Levy — mirrors Section 10 of CGST Act. Small taxpayers (T/O ≤ ₹1.5 Cr) can opt for 1-6% composition.
First Charge: UTGST dues are first charge on property. Electronic cash ledger, credit ledger, and utilization of UTGST credit — can be used for UTGST and IGST only (Section 9). Interest on delayed payment at 18% p.a.
Refund provisions mirror CGST Act Section 54. Excess UTGST paid through electronic cash ledger is refundable. Consumer Welfare Fund provisions apply.
UTGST credit can only be utilized against UTGST and IGST liability (in that order). Cannot cross-utilize against CGST. ITC conditions from CGST Act Section 16-21 apply mutatis mutandis.
Assessment provisions of CGST Act (self-assessment, provisional, scrutiny, best judgment) apply to UTGST. Tax officers have same powers for UTGST assessments.
CGST audit provisions apply. Commissioner may conduct audit (Section 65 equivalent) or order special audit (Section 66 equivalent) for UTGST matters.
Show cause notice provisions (equivalent to CGST Sections 73-74) apply. 3 years for non-fraud demands, 5 years for fraud. Recovery mechanisms: bank attachment, property, civil imprisonment.
Appeals against UTGST orders go to same Appellate Authority as CGST. Revision by Commissioner. Further appeal to GST Appellate Tribunal, High Court, Supreme Court.
Transition provisions, power to make rules, removal of difficulties. Section 21: CGST Act provisions apply mutatis mutandis to UTGST (most important section — imports entire CGST framework).
| Aspect | UTGST | SGST |
|---|---|---|
| Applicability | UTs without Legislature (5 UTs) | States + UTs with Legislature (Delhi, Puducherry, J&K) |
| Enacted by | Parliament (Central Government) | Respective State Legislature |
| Revenue goes to | Consolidated Fund of India | Respective State Government |
| Administration | Central Government officers | State GST officers |
| Rate setting | Central Government (as per GST Council) | State Legislature (as per GST Council) |
| Credit utilization | UTGST → UTGST → IGST | SGST → SGST → IGST |
Section 21 of the UTGST Act states that all provisions of the CGST Act apply mutatis mutandis to UTGST. This means:
In practice, taxpayers in UTGST territories follow the exact same compliance procedures as SGST states. The only difference is administrative — UTGST is managed by Central Government officers.
UTGST (Union Territory Goods and Services Tax) is the GST component levied by the Central Government on intra-UT supplies in Union Territories that don't have their own Legislature. It is the equivalent of SGST for states. For any supply within these UTs, both CGST and UTGST are charged at equal rates. The UTGST Act has 26 sections across 11 chapters.
Five Union Territories pay UTGST: Chandigarh, Lakshadweep, Dadra & Nagar Haveli and Daman & Diu (merged in 2020), Andaman & Nicobar Islands, and Ladakh (UT since 2019). Delhi, Puducherry, and Jammu & Kashmir have their own Legislatures, so they levy SGST instead of UTGST.
No. UTGST credit can only be utilized to pay UTGST liability first, and then IGST liability if UTGST credit remains. It cannot be used for CGST payment. Similarly, CGST credit cannot be used for UTGST. This cross-utilization restriction is prescribed under Section 9 of the UTGST Act.
The maximum rate of UTGST is 20% (i.e., 40% combined CGST+UTGST). However, in practice the highest slab used is 14% UTGST (28% combined for luxury/sin goods). Actual rates are 2.5%, 6%, 9%, and 14% UTGST — matching the CGST rates for 5%, 12%, 18%, and 28% total GST.
UTGST and SGST serve the same purpose — they are the sub-national component of GST on intra-territory/state supplies. The key differences: (1) SGST is enacted by State Legislatures, UTGST by Parliament; (2) SGST revenue goes to the respective state, UTGST to the Centre; (3) SGST is administered by state officers, UTGST by central officers. From a taxpayer's perspective, the compliance process is identical.
Whether you're in a UTGST or SGST territory, LaabamOne handles all GST filings, ITC reconciliation, and e-Invoice generation automatically.
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