Union Territory Goods and Services Tax Act, 2017 — back to Table of Contents
Section 8A. Power not to recover Goods and Services Tax not levied or short-levied as a result of general practice
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.
Note: Section 8A was inserted by the Finance (No. 2) Act, 2024, section 156, with effect from 1 November 2024. It is a “general practice” regularisation provision, comparable to the erstwhile Section 11C/11A relief mechanism under excise and service tax law, allowing the Government to forgo recovery of tax where a generally prevalent trade practice resulted in non-levy or short-levy.
