Chapter III - Levy and collection of tax
Section 8A
Section 8A: Non-recovery following general practice
Section 8A allows the Government, on the GST Council’s recommendation, to direct non-recovery of UTGST that was not levied or was short-levied because of a generally prevalent practice. It is not an automatic waiver.
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Need advice on Section 8A?
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
Notwithstanding anything contained in this Act, if the Government is satisfied that—
(a) a practice was, or is, generally prevalent regarding levy of Union territory tax (including non-levy thereof) on any supply of goods or services or both; and
(b) such supplies were, or are, liable to— (i) Union territory tax, in cases where according to the said practice, Union territory tax was not, or is not being, levied; or (ii) a higher amount of Union territory tax than what was, or is being, levied, in accordance with the said practice,
the Government may, on the recommendation of the Council, by notification in the Official Gazette, direct that the whole of the Union territory tax payable on such supplies, or, as the case may be, the Union territory tax in excess of that payable on such supplies, but for the said practice, shall not be required to be paid in respect of the supplies on which the Union territory tax was not, or is not being, levied, or was, or is being, short-levied, in accordance with the said practice.
Key takeaways
General practice is required
The provision concerns a practice that was or is generally prevalent, not merely an individual taxpayer’s error.
Notification controls relief
The Government must issue a Gazette notification directing the whole or excess tax not to be paid for the covered supplies.
Effective insertion
This provision was inserted by the Finance (No. 2) Act, 2024, effective 1 November 2024.
General practice is required
The provision concerns a practice that was or is generally prevalent, not merely an individual taxpayer’s error.
Notification controls relief
The Government must issue a Gazette notification directing the whole or excess tax not to be paid for the covered supplies.
Effective insertion
This provision was inserted by the Finance (No. 2) Act, 2024, effective 1 November 2024.
Practical checklist
Do
- Identify the exact Gazette notification before claiming non-recovery.
- Match the supply, period and practice to the notification’s coverage.
- Keep contemporaneous records that show the historical treatment.
Frequently asked questions
Does a long-standing industry practice itself cancel a demand?
No. Section 8A permits a Government notification on the Council’s recommendation; check whether an operative notification covers the supply.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026