Chapter I - Preliminary
Section 1
Section 1: Short title, extent and commencement
Section 1 names the Union Territory Goods and Services Tax Act, 2017 and lists where it applies: the Union territories of the Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Ladakh, Chandigarh and other territory. Commencement is by Gazette notification, and different provisions may start on different dates.
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This article is for general information. Refer to the Union Territory Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) This Act may be called the Union Territory Goods and Services Tax Act, 2017.
(2) It extends to the Union territories of the Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Ladakh, Chandigarh and other territory.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
Introduction
The UTGST Act applies to Union territories without their own legislature, together with 'other territory' as defined in the CGST Act. Union territories that have a legislature are not in the list in Section 1(2).
The list was amended by section 136 of the Finance Act, 2020, which replaced 'Dadra and Nagar Haveli, Daman and Diu' with 'Dadra and Nagar Haveli and Daman and Diu, Ladakh'.
Key takeaways
Territories covered
Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Ladakh, Chandigarh and other territory.
2020 amendment
Section 136 of the Finance Act, 2020 inserted Ladakh and replaced the separate entries for Dadra and Nagar Haveli and for Daman and Diu with the merged Union territory.
Phased commencement
Notification No. 1/2017-Union Territory Tax brought sections 1 to 5, 17, 21 and 22 into force on 22 June 2017. Notification No. 3/2017-Union Territory Tax brought sections 6 to 16, 18 to 20 and 23 to 26 into force on 1 July 2017.
Where UTGST applies
Section 1(2) is read with the definition of 'Union territory' in Section 2(8), which the Finance Act, 2020 amended in the same way. 'Other territory' is defined in section 2(81) of the CGST Act and applies to the UTGST Act through Section 2(10).
For an intra-State supply in one of these territories, UTGST is charged alongside central tax. A supply into or out of the territory is generally an inter-State supply under the IGST Act.
Section-wise commencement
The proviso to Section 1(3) treats a reference to the 'commencement of this Act' in a provision as a reference to the date that provision came into force.
Notification No. 1/2017-Union Territory Tax (21 June 2017) appointed 22 June 2017 for sections 1, 2, 3, 4, 5, 17, 21 and 22. Notification No. 3/2017-Union Territory Tax (28 June 2017) appointed 1 July 2017 for sections 6 to 16, 18 to 20 and 23 to 26.
Practical checklist
Do
- Check that the territory concerned is one listed in Section 1(2) before applying UTGST.
- Use the amended list when quoting the extent clause.
Frequently asked questions
Does UTGST apply in Delhi or Puducherry?
They are not listed in Section 1(2) of the UTGST Act. Check the applicable State GST law for Union territories with a legislature.
When was Ladakh added?
Section 136 of the Finance Act, 2020 (12 of 2020) amended Section 1(2) to include Ladakh.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026