MISCELLANEOUSCentral

Section 21 of The Union Territory Goods and Services Tax Act, 2017

Application of provisions of Central Goods and Services Tax Act.

Subject to the provisions of this Act and the rules made thereunder, the provisions of the Central Goods and Services Tax Act, relating to,--

(i)scope of supply;
(ii)composition levy;
(iii)composite supply and mixed supply;
(iv)time and value of supply;
(v)input tax credit;
(vi)registration;
(vii)tax invoice, credit and debit notes;
(viii)accounts and records;
(ix)returns;
(x)payment of tax;
(xi)tax deduction at source;
(xii)collection of tax at source;
(xiii)assessment;
(xiv)refunds;
(xv)audit;
(xvi)inspection, search, seizure and arrest;
(xvii)demands and recovery;
(xix)advance ruling;
(xx)appeals and revision;

(xxi)presumption as to documents;
(xxii)offences and penalties; (xxiii) job work;
(xxiv)electronic commerce;
(xxv)settlement of funds;
(xxvi)transitional provisions; and (xxvii) miscellaneous provisions including the provisions relating to the imposition of interest and penalty, shall, mutatis mutandis, apply,--
(a)so far as may be, in relation to Union territory tax as they apply in relation to central tax as if they were enacted under this Act;
(b)subject to the following modifications and alterations which the Central Government considers necessary and desirable to adapt those provisions to the circumstances, namely:--
1. (i)references to "this Act" shall be deemed to be references to "the Union Territory Goods and Services Tax Act, 2017";
2. (ii)references to "Commissioner" shall be deemed to be references to "Commissioner" of Union territory tax as defined in clause (2) of section 2 of this Act;
3. (iii)references to "officers of central tax" shall be deemed to be references to "officers of Union territory tax";
4. (iv)references to "central tax" shall be deemed to be references to "Union territory tax" and vice versa;
5. (v)references to "Commissioner of State tax or Commissioner of Union territory tax" shall be deemed to be references to "Commissioner of central tax";
6. (vi)references to "State Goods and Services Tax Act or Union Territory Goods and Services Tax Act" shall be deemed to be references to "Central Goods and Services Tax Act";
7. (vii)references to "State tax or Union territory tax" shall be deemed to be references to "central tax".

Summary

Many major rules from the Central Goods and Services Tax Act are directly applied to the Union territory tax system.
This includes rules on registration, tax valuation, refunds, audits, and electronic commerce.
When applying the Central rules, the phrase mutatis mutandis (making the necessary changes in detail) allows terms to be swapped out to make sense locally.
For example, whenever the Central Act says central tax, it should be read as Union territory tax.
The definitions used in these applied rules match the specific meanings established at the very beginning of the Union Territory Act.

Practical examples

1A tax auditor in Chandigarh wants to conduct a search on a suspicious business. He uses the exact same search and seizure procedures outlined in the Central Goods and Services Tax Act because Section 21 adopts those rules completely for the Union territory.

2An online marketplace operating in Andaman and Nicobar Islands reads the Central Act's rules on electronic commerce, mentally replacing every mention of Commissioner of central tax with Commissioner of Union territory tax to understand their local legal duties.

FAQ

1. Does the Union Territory have its own completely separate rules for tax registration?

No, the provisions of the Central Goods and Services Tax Act relating to registration apply to this Act.

2. How should a business read the phrase central tax when applying the Central rules to a Union territory?

References to central tax shall be deemed to be references to Union territory tax.

3. Which law provides the definition of Commissioner when applying these rules?

The definition of Commissioner is found in clause 2 of section 2 of the Union Territory Goods and Services Tax Act.

4. Do the penalties from the Central Act apply here?

Yes, provisions relating to offences and penalties from the Central Act apply mutatis mutandis.

Test yourself

Q1.Under Section 21 of The Union Territory Goods and Services Tax Act, 2017, how are references to the State Goods and Services Tax Act to be interpreted?

Q2.Under Section 21 of The Union Territory Goods and Services Tax Act, 2017, how should the term this Act be read when applying rules from the Central Goods and Services Tax Act?

Q3.Section 21 of The Union Territory Goods and Services Tax Act, 2017 relies heavily on the word Commissioner. According to the cross-referenced Section 2, what does Commissioner actually mean in this law?

Q4.Section 21 of The Union Territory Goods and Services Tax Act, 2017 alters rules for a Union territory. According to the cross-referenced Section 2, which of the following is specifically defined as a separate Union territory?

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