Notification No. 16/2021 – IGST (Rate) Amendments Explained

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 16/2021 – Integrated Tax (Rate): Seeks to amend Notification No 9/2017- Integrated Tax (Rate) dated 28.06.2017.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R (E).- In exercise of the powers conferred by sub-section (3) and sub-section (4) of section 5, subsection (1) of section 6 and clause (xxv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 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 amendments further to amend in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.9/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 684 (E), dated the 28th June, 2017, namely:-

In the said notification, in the TABLE, -

against serial number 3, in column (3), in the heading “ Description of Services” ,the words “or a Governmental authority or a Government Entity” shall be omitted;

against serial number 3A, in column (3), in the heading “ Description of Services” ,the words “or a Governmental authority or a Government Entity” shall be omitted;

against serial number 16, in column (3), in the heading “ Description of Services” , after item (c), the following shall be inserted, namely, -
“Provided that nothing contained in items (b) and (c) above shall apply to services supplied through an electronic commerce operator, and notified under sub-section (5) of Section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017).”;

against serial number 18, in column (3), in the heading “ Description of Services” after item (e), the following shall be inserted, namely, -
“Provided that nothing contained in item (e) above shall apply to services supplied through an electronic commerce operator, and notified under sub-section (5) of Section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017).”

2. This notification shall come into force with effect from 1^st day of January, 2022.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: -The principal notification No. 9/2017 - Integrated Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 684 (E), dated the 28^th June, 2017 and last amended by notification No. 07/2021 – Integrated Tax (Rate), dated the 30^th September, 2021 vide number G.S.R. 690(E.), dated the 30^th September 2021.

📚 Frequently Asked Questions (FAQs): Notification No. 16/2021 - Integrated Tax (Rate)

Q1: What is Notification No. 16/2021 – Integrated Tax (Rate)?

Answer:
Notification No. 16/2021 – Integrated Tax (Rate), dated 18th November 2021, amends Notification No. 9/2017 – IGST (Rate). It mainly removes references to "Governmental authority" and "Government Entity" from certain services and clarifies tax treatment for services provided via electronic commerce operators (ECOs). These changes take effect from 1st January 2022notfctn-16-2021-igst-rate-engli….

Q2: Which services were impacted by this notification?

Answer:
The notification impacts the following:
Serial No. 3 & 3A: Omission of “Governmental authority or Government Entity.”
Serial No. 16 & 18: Added provisos excluding applicability of some service exemptions when provided through an E-commerce operator (ECO).

Q3: What changes apply to Electronic Commerce Operators (ECOs)?

Answer:
From 1st January 2022, specific service exemptions under Serial No. 16(b)(c) and 18(e) will not apply if supplied via an ECO. This ensures ECOs follow a uniform tax treatment under IGST provisions.

Q4: Why were “Governmental authority or Government Entity” references removed?

Answer:
The amendment aligns GST provisions with prior rationalization measures. The objective was to simplify service descriptions and avoid overlap in exemptions for government-related entities.

Q5: From when is this notification effective?

Answer:
Notification No. 16/2021 – Integrated Tax (Rate) comes into force on 1st January 2022.

Q6: How does this affect small and medium businesses using e-commerce platforms?

Answer:
Businesses providing services via platforms like Amazon, Flipkart, Zomato, Swiggy, Ola, Uber, etc., must now comply with IGST rules without relying on earlier exemptions under Serial Nos. 16 & 18. It increases compliance but also brings greater clarity.

Q7: Where can I get professional help for GST compliance after this change?

Answer:
Businesses can consult a GST Expert/GST Professional for detailed assistance. Additionally, Finodha offers specialized support for:
GST Compliance
GST Return Filing
GST Registration
Setup Business

Q8: Does this notification override previous amendments?

Answer:
Yes ✅. This notification supersedes earlier provisions related to government entities in Notification No. 9/2017 – IGST (Rate) and modifies exemptions related to ECOs.

Q9: Why did the GST Council recommend these changes?

Answer:
The GST Council recommended these changes to:
Streamline tax treatment across different service providers.
Ensure parity between offline and e-commerce transactions.
Plug revenue leakages by clarifying exemption limits.

Q10: What should taxpayers do next?

Answer:
Taxpayers should:
Revisit contracts with e-commerce operators.
Check if earlier exemptions still apply.
Consult a GST advisor for smooth transition.
Professional support is available through GST Compliance experts.

Claim your TDS Refund before it EXPIRE in

ITR Filing Starts Only

GST Return Filing Starts Only