7. Levy and collection.—(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, on the value determined under section 15 of the Central Goods and
Services Tax Act and at such rates, not exceeding twenty per cent., as may be notified by theCentral
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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 theCouncil.
(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.
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[(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.
8. Power to grant exemption from tax.—(1) Where the Central Government is satisfied that it is
necessary in the public interest so to do, it may, on the recommendations of the Council, by notification,
exempt generally either absolutely or subject to such conditions as may be specified therein, goods or
services or both of any specified description from the whole or any part of the tax leviable thereon with
effect from such date as may be specified in such notification.
(2) Where the Central Government is satisfied that it is necessary in the public interest so to do, it
may, on the recommendations of the Council, by special order in each case, under circumstances of an
exceptional nature to be stated in such order, exempt from payment of tax any goods or services or both
on which tax is leviable.
(3) The Central Government may, if it considers necessary or expedient so to do for the purpose of
clarifying the scope or applicability of any notification issued under sub-section (1) or order issued under
sub-section (2), insert an explanation in such notification or order, as the case may be, by notification at
any time within one year of issue of the notification under sub-section (1) or order under sub-section (2),
and every such explanation shall have effect as if it had always been the part of the first such notification
or order, as the case may be.
(4) Any notification issued by the Central Government under sub-section (1) of section 11 or order
issued under sub-section (2) of the said section of the Central Goods and Services Tax Act shall be
deemed to be a notification or, as the case may be, an order issued under this Act.
1. Subs. by Act 33 of 2018, s. 2 for sub-section (4) (w.e.f. 1-2-2019)
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Explanation.—For the purposes of this section, where an exemption in respect of any goods or services
or both from the whole or part of the tax leviable thereon has been granted absolutely, the registered person
supplying such goods or services or both shall not collect the tax, in excess of the effective rate, on such
supply of goods or services or both.