Important Keyword: Notification No. 01/2021 - Integrated Tax (Rate), IGST goods rate change, GST update June 2021, Diethylcarbamazine GST rate, 9503 toy GST change, GST 2021 amendment, IGST rate revision, Integrated Tax 5% goods, GST toy category 9503, Diethylcarbamazine GST, GST Council rate update,
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Table of Contents
[F. No. 354/53/2021]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 2nd June, 2021
Notification No. 01/2021 – Integrated Tax (Rate): Seeks to amend notification No. 1/2017- Integrated Tax (Rate) to prescribe change in CGST rate of goods.
[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 (1) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance(Department of Revenue), No.1/2017- 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. 666 (E), dated the 28th June, 2017, namely:-
In the said notification, -
- in Schedule I - 5%, against S. No. 259A, for the entry in column (2), the entry “9503” shall be substituted;
- after Schedule I, in the List 1, after serial number 230 and the entries relating thereto, the following shall be inserted, namely-
“(231). Diethylcarbamazine ”.
2. This notification shall come into force on the 2nd day of June, 2021.
(Rajeev Ranjan)
Under Secretary to the Government of India
Note: - The principal notification No.1/2017-Integrated Tax (Rate), dated the 28th June, 2017was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 666(E), dated the 28th June, 2017 and was last amended by notification No. 03/2020-Integrated Tax(Rate), dated the 25th March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 217(E),dated the 25th March, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 01/2021 - Integrated Tax (Rate)
Q1: What is Notification No. 01/2021 – Integrated Tax (Rate)?
Answer:
Notification No. 01/2021 – Integrated Tax (Rate), issued on 2nd June 2021, amends Notification No. 1/2017 – IGST (Rate) to revise GST rates applicable to certain goods.
The key changes include:
Updating HSN Code 9503 under the 5% GST slab (Schedule I).
Adding “Diethylcarbamazine” to the list of items taxed at 5%.
👉 For expert advice on IGST classification, consult a GST Professional.
Q2: What change has been made for HSN Code 9503?
Answer:
Under Schedule I (5% rate), against S. No. 259A, the entry now reads “9503”, replacing the previous one.
📦 HSN 9503 includes:
Tricycles, scooters, pedal cars, and similar wheeled toys.
Dolls and action figures.
Puzzles, construction toys, and other playthings.
This means all HSN 9503 items attract 5% IGST post this amendment.
Q3: What is the significance of including “Diethylcarbamazine” in the list?
Answer:
The medicine Diethylcarbamazine (DEC), used to treat filaria and parasitic infections, has been added to the 5% GST list under List 1 (Schedule I).
💊 This ensures that essential medicines remain affordable while maintaining uniform GST classification for pharmaceuticals.
For pharma business setup, check MSME Registration.
Q4: When does Notification No. 01/2021 come into effect?
Answer:
This notification came into force on 2nd June 2021.
All supplies of relevant goods (toys and medicines) made on or after this date are subject to the amended 5% IGST rate.
📅 For return filing and accuracy, use GST Return Filing.
Q5: What was the objective of this amendment?
Answer:
The key goals were to:
Align GST rates with current trade classifications (HSN codes).
Ensure lower tax on essential goods, especially healthcare items.
Simplify compliance by clarifying product categorization.
🧾 Simplify your compliance workflow with GST Compliance Services.
Q6: How does this amendment impact toy manufacturers and traders?
Answer:
All goods under HSN 9503 are now uniformly taxed at 5% IGST, offering clarity and reducing rate disputes.
Toy importers and domestic manufacturers can plan better under a single rate structure.
This supports “Make in India” initiatives in the toy industry by rationalizing taxes.
🎯 New toy entrepreneurs can start easily with Setup Business.
Q7: How does this update connect to Notification No. 1/2017 – IGST (Rate)?
Answer:
Notification No. 1/2017 – IGST (Rate) originally defined IGST rates for goods in various schedules (0%, 5%, 12%, 18%, 28%).
Notification No. 01/2021 updates specific entries to:
Clarify classification under 9503 (toys).
Add Diethylcarbamazine to the 5% list.
This ensures rate consistency and compliance accuracy.
Q8: How will this amendment benefit consumers?
Answer:
✅ Benefits to consumers include:
Lower cost of essential toys and medicines.
Simplified GST rates on daily-use and healthcare goods.
Indirect price stability in retail markets.
🏠 Consumers buying products under 9503 (like puzzles or dolls) or DEC-based medicines will benefit from reduced IGST.
Q9: Which sectors are impacted by this notification?
Answer:
The sectors most impacted include:
Pharmaceuticals – for Diethylcarbamazine.
Toy manufacturing and retail – for HSN 9503 items.
Import-export businesses trading in listed goods.
🌍 For import/export registration, visit Online GST Registration.
Q10: What should businesses do post this amendment?
Answer:
Update HSN codes and rates in accounting and billing systems.
Apply the 5% IGST on applicable toy and medicine products.
Maintain clear documentation for all post-June 2021 transactions.
💼 Stay compliant through Private Limited Compliance Services.
Q11: How can Finodha assist under this notification?
Answer:
Finodha helps businesses by:
Identifying correct HSN classifications.
Updating GST rate mappings across products.
Managing compliance and return filings for manufacturers and importers.
Offering guidance from Private Limited Registration to ITR Filing.
Download PDF: Notification No. 01/2021 - Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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