10/2025-Union Territory Tax (Rate) — Seeks to supersede Notification No. 2/2017- Union Territory Tax (Rate) dated 28.06.2017.

This notification is a big update for businesses operating in Union Territories. It's essentially replacing an older notification from 2017, specifically Notification No. 2/2017-Union Territory Tax (Rate). The key takeaway is that it changes the GST rates applicable to specific goods and services within Union Territories.

Think of it as a revised price list for GST. Some items might now be taxed at a different rate – could be higher or lower. It's crucial for businesses to carefully review this new notification and compare it with the previous one to identify any changes impacting their product or service offerings.

Who does this affect? Any business registered under GST and operating within a Union Territory (like Andaman and Nicobar Islands, Lakshadweep, Ladakh, Dadra and Nagar Haveli and Daman and Diu, Chandigarh). You need to update your accounting and billing systems to reflect the new GST rates. Failure to do so could lead to incorrect tax collection or payment, resulting in penalties and interest.

Since the notification was issued on September 17, 2025, the revised rates are expected to come into effect soon. The specific effective date should be mentioned in the notification itself, so double-check that date and ensure you're compliant from then onwards. Businesses should also consult with their tax advisors to fully understand the implications of this notification for their specific situation.