Important Keyword: Notification No. 01/2024 – Integrated Tax, IGST 2024 rate change, 0.5% IGST, GST Council recommendation, IGST compliance India, Integrated Tax Notification FAQs,
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[F. No. CBIC-20006/21/2024-GST]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, dated the 10th July, 2024
Notification No. 01/2024 – Integrated Tax: Seeks to amend Notification No. 02/2018 – Integrated Tax, dated 20.09.2018.
GST [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 the second proviso to section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (1) of section 52 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 amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 02/2018-Integrated Tax, dated the 20th September, 2018 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 901(E), dated the 20th September, 2018, namely:-
In the said notification, for the words “one per cent.”, the words “half per cent.” shall be substituted.
2. This notification shall come into force from the date of its publication in official gazette.
(Raghavendra Pal Singh)
Director
Note: – The principal Notification No. 02/2018-Integrated Tax, dated the 20th September, 2018 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 901(E), dated the 20th September, 2018.
📚 Frequently Asked Questions (FAQs): Notification No. 01/2024 – Integrated Tax
Q1: 📢 What is Notification No. 01/2024 – Integrated Tax all about?
Answer:
This notification amends Notification No. 02/2018–Integrated Tax to revise the integrated tax (IGST) rate from 1% to 0.5% on specified categories under Section 52 of the CGST Act, applicable to e-commerce operators. The change aligns with the GST Council’s recommendation and is effective from the date of publication.
Q2: 📉 What has changed in Notification No. 02/2018 – Integrated Tax?
Answer:
The term “one per cent” is replaced by “half per cent.” This essentially means that the IGST rate applicable in specific scenarios is halved to 0.5%.
Q3: 🗓️ From when is Notification No. 01/2024 effective?
Answer:
The notification takes effect from the date it is published in the Official Gazette, i.e., 10th July 2024.
Q4: 👥 Who benefits from this rate reduction under Notification 01/2024?
Answer:
Primarily, e-commerce operators liable to collect tax at source under Section 52 of the CGST Act benefit from the rate revision. It reduces their IGST collection liability from 1% to 0.5%.
Q5: 🧾 What is the purpose of Section 52 in the CGST Act?
Answer:
Section 52 mandates that e-commerce operators collect tax at source (TCS) at a notified rate on taxable supplies made through their platforms. The amendment reduces this collection burden.
Q6: 💼 How should businesses implement this change?
Answer:
Businesses and e-commerce platforms should update their billing systems to reflect the new 0.5% IGST rate. They must also review agreements and systems that previously factored in the 1% rate.
Q7: ⚠️ What are the compliance implications of this change?
Answer:
While the rate is reduced, the requirement to collect TCS and file Form GSTR-8 remains unchanged. Timely filing and correct rate application are crucial for compliance. You can ensure your filings stay on track with GST Return Filing services by Finodha: https://finodha.in/gst-return-filing/
Q8: 📚 Where can I read Notification No. 02/2018–Integrated Tax?
Answer:
Notification No. 02/2018 was published on 20th September 2018 and can be accessed on the official CBIC or Gazette websites. Notification 01/2024 directly references and modifies its contents.
Q9: 🛠️ What do I do if my accounting software still applies 1% IGST?
Answer:
You should coordinate with your IT or accounting software provider to patch the tax rate to 0.5%. This helps prevent over-collection and future rectification hassles.
Q10: 🤝 Where can I get expert help with IGST compliance and rate updates?
Answer:
You can consult Finodha’s GST professionals at www.Finodha.in for comprehensive support including:
GST Compliance: https://finodha.in/gst-compliance/
GST Registration: https://finodha.in/online-gst-registration/
Private Limited Company setup: https://finodha.in/private-limited-company/
MSME Registration: https://finodha.in/online-udyam-udyog-aadhar-msme-registration/
🔄 Summary
Notification No. 01/2024–Integrated Tax introduces a beneficial reduction in the IGST rate to 0.5%, easing the tax collection process for e-commerce operators. It is vital for businesses to adapt to this rate change to remain compliant and avoid penalties.
✅ Conclusion
This rate reduction is a welcome move, lowering the cost of tax compliance for e-commerce entities while maintaining GST discipline. Timely awareness and updates in systems and practices will ensure seamless integration of this change.
Need GST help or system support? Finodha is just a click away! 🧾🚀
Download PDF: Notification No. 01/2024 – Integrated Tax
More Information: https://taxinformation.cbic.gov.in/
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