Chandigarh: GST & labour compliance

GST in Chandigarh

A sale where the supplier and the place of supply are both in Chandigarh carries CGST plus UTGST, split equally. A sale to a buyer in another state carries IGST instead, and that tax goes to the destination state. Chandigarh is a union territory without a legislature, so the state half of the tax is levied under the UTGST Act, 2017, not an SGST Act.

Registration threshold

A business that supplies only goods can stay unregistered up to ₹40,00,000 of aggregate turnover. The higher limit is lost if you supply any taxable service, or deal in ice cream, pan masala or tobacco products; those businesses register at ₹20,00,000.

Inter-state sales of goods need registration from the first rupee, whatever the turnover. Use the registration checker for the other compulsory cases.

Composition scheme

Manufacturers, traders and restaurants in Chandigarh can opt for composition up to ₹1.5 crore of turnover. Service providers have a separate ₹50 lakh limit. Composition dealers cannot sell across state lines or claim input tax credit.

Quarterly returns

Chandigarh is in the second QRMP group, so small taxpayers on quarterly filing submit GSTR-3B by the 24th of the month after each quarter. Tax for the first two months of the quarter is still paid monthly by the 25th, through form PMT-06.

Reading a Chandigarh GSTIN

Every GSTIN issued in Chandigarh starts with 04. Characters 3 to 12 are the holder's PAN, the 13th counts registrations under that PAN in the state, the 14th is Z by default, and the 15th is a checksum. A GSTIN that starts with 04 but fails the checksum was mistyped. Check one in the GSTIN validator.

Professional tax in Chandigarh

We have not published verified PT slabs for Chandigarh yet — most small states and union territories either levy no PT on salaries or administer it through the local body. Check the Chandigarh commercial tax department for the current position, or start from the state-wise professional tax calculator.

Labour Welfare Fund in Chandigarh

Chandigarh runs a Labour Welfare Fund: ₹5 per employee from the employee and ₹20 from the employer every month, deducted in every month.

Deducted every month; both shares are deposited by 15 October (for April–September) and 15 April (for October–March).

Work out Chandigarh LWF in the calculator.