[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)
Notification
No. 16/2025- Union Territory Tax (Rate)
New Delhi, the 17^th September, 2025
G.S.R. -----(E). - In exercise of the powers conferred by sub-sections (3) and (4) of section 7, sub-section (1) of section 8 and section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), read with sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendment further to amend the notification number 12/2017- Union Territory Tax (Rate), of the Government of India, in the Ministry of Finance (Department of Revenue), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 703 (E), dated the 28th June, 2017, namely: -
In the said notification,-
- (a) In the table, -
-
(i) against serial number 18, in column (3), after clause (b), the following explanation shall be inserted, namely:-
“Explanation. - Nothing contained in this entry shall apply to:
- (i) local delivery services provided by an Electronic Commerce Operator; or
- (ii) local delivery services provided through an Electronic Commerce Operator.”;
-
(ii) after serial number 36B and the entries relating thereto, the following serial numbers and entries relating thereto shall be inserted, namely: -
| (1) | (2) | (3) | (4) | (5) |
|---|
| “36C | Heading 9971 | Services of life insurance business provided by an insurer to the insured, where the insured is not a group. | | |
[Please refer to clause (zfb) in para 2]
Explanation: For the removal of doubts, it is hereby clarified that:
a. This exemption shall apply to a contract of insurance where the insured is an individual, or an individual and family of the said individual.
b. For the purposes of (a) above, family shall include all individuals insured as family in the contract of insurance. | Nil | Nil |
| 36D | Heading 9971 | Services of health insurance business provided by an insurer to the insured, where the insured is not a group.
[Please refer to clause (zfb) in para 2]
Explanation: For the removal of doubts, it is hereby clarified that:
a. This exemption shall apply to a contract of insurance where the insured is an individual, or an individual and family of the said individual.
b. For the purposes of (a) above, family shall include all individuals insured as family in the contract of insurance. | Nil | Nil |
| 36E | Heading 9971 | Reinsurance of the insurance services specified in serial numbers 36C or 36D. | Nil | Nil”; |
- (b) in paragraph 2,
-
(i) for clause (ze), the following shall be substituted, namely: -
“(ze)‘goods transport agency’ means any person who provides service in relation to transport of goods by road and issues a consignment note by whatever name called, but does not include
- (i) an electronic commerce operator by whom the services of local delivery are provided,
- (ii) an electronic commerce operator through whom the services of local delivery are provided”;
-
(ii) after clause (zfa), the following clause shall be inserted, namely:-
“(zfb) For the purposes of entries at serial numbers 36C and 36D in the table above, ‘group’ means group of persons who join together with a commonality of purpose or for engaging in a common economic activity, other than availing insurance, and includes:
a. Employer– employee groups, where an employer-employee relationship exists between the master/group policyholder and the members of the group in accordance with the applicable laws;
b. Non employer– employee groups, where a clearly evident relationship exists between the master/group policyholder and the members of the group, for services/ activities other than insurance.”;
-
(iii) after clause (zg), the following clause shall be inserted, namely: -
“(zga) ‘health insurance business’ means the effecting of contracts which provide for sickness benefits or medical, surgical or hospital expense benefits, whether in-patient or out-patient, travel cover and personal accident cover;”.
- This notification shall come into force with effect from the 22^nd day of September, 2025.
[F.No.190341/188/2025-TRU]
(Md. Adil Ashraf)
Under Secretary to the Government of India
The principal notification No. 12/2017 - Union Territory Tax (Rate) was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 703 (E), dated the 28th June, 2017 and was last amended vide notification number 06/2025-Union Territory Tax (Rate) published in the Gazette of India Extraordinary, vide number G.S.R. 43(E), dated the 16th January, 2025.
