Taxes levied on goods and services are subject to various government policies in accordance with any existing act in the country. There is State, Central and integrated taxes are implemented on various states apart from these taxes there are taxes levied according to Union territory standards on places that are govern directly by the Central Government. The Union Territory Goods and Services Tax Act 2017 enumerate the taxes to be imposed on goods and services Intra State or within the states or union territories. The act came into force on 12th April 2017 with 9 chapters and 26 sections detailing the mode of imposing and collecting tax levied on supply of goods and services on the mentioned places in the act in accordance with the provisions of the Act.
Chapter 2 of the act details the administrative powers of the officers appointed through notification and they are also by virtue of this Act can delegate their duties and powers to their concerned subordinates to implement levied tax on goods and services supply in union territories. Section 6 gives the exemption power to officers appointed as per Central Goods and Services Act as authorized officers to implement levied tax and collection in union territories on exceptional circumstances.
Chapter 3 enumerates the tax levied upon the goods and services including, petrol, crude oil, and aviation fuel. The taxable goods and services supply is done only through registered person and if the supplier is not a registered person he has to do it through a registered person subject to the Act.
As per section 9 the input tax of the registered person is accessible in the electronic credit ledger of the registered supplier and the union territory tax cannot be paid to Central Tax and any remaining of the Union Territory tax is directed to integrated goods and services Tax.
Chapter 5 states the authorization power of village officers, railway, police, custom officers or officers of State or Central officers appointed as per the Act to assist proper officers appointed during the search , arrest and seizure of any one violates the provisions of the act to evade tax payment.
Chapter 6 Section 13 deals with the power of the officer to recover the tax arrears due to the government.
Chapter 7 Section 16 enumerates the power of Appellate Authority to hear appeals from the Advance Ruling Authority on advance ruling on goods and services Tax.
Chapter 8 elaborates the transitional powers of registered person and in section 19 details all the transitional provisions according to the act to the work done.
Chapter 9 deals with the provisions including Central Government to make appropriate rules and regulations including instructions and directions from time to time and also the removal of any inconsistent provisions not subject to the Act.
The Union Territory Act is comprehensive in all aspects relating to the tax levied on all Intra State transactions in the supply of goods and services is a significant enactment among tax laws in the country.