Union Territory Tax Removal of Difficulty Orders

UTGST Removal of Difficulty Order 03/2019

Whereas, clause (v) of section 21 of the Union Territory Goods and Services Tax
Act, 2017 (14 of 2017) read with sub-section (2) of section 17 of the Central Goods and
Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the “said Act”)
provides that the input tax credit shall be restricted to so much of input tax as is attributable to
the taxable supplies;

And whereas clause (v) of section 21 of the Union Territory Goods and Services Tax Act,
2017 (14 of 2017), read with sub-section (3) of section 17 of said Act provides that the value
for the purpose of sub-section (2) of section 17 of the said Act shall be such as prescribed by
rules;

Now, therefore, in exercise of the powers conferred by section 26 of the Union Territory
Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on
recommendations of the Council, hereby makes the following Order, namely: –

1. Short title. — This Order may be called the Union Territory Goods and Services Tax (Third
   Removal of Difficulties) Order, 2019.

2. For the removal of difficulties, it is hereby clarified that in case of supply of services
   covered by clause (b) of paragraph 5 of Schedule II of the said Act, the amount of credit
   attributable to the taxable supplies including zero rated supplies and exempt supplies shall be
   determined on the basis of the area of the construction of the complex, building, civil
   structure or a part thereof, which is taxable and the area which is exempt.

3. This order shall come into force with effect from the 1
   st of April, 2019.