Notification No. 01/2021 – Central Tax (Rate) GST Goods Update

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Notification No. 01/2021 – Central Tax (Rate): Seeks to amend notification No. 1/2017-Central 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 9 and 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-Central Tax (Rate), dated the 28^th June, 2017,published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28^th June, 2017, namely:-

In the said notification, -

in Schedule I - 2.5%,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 2^nd day of June, 2021.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: - The principal notification No.1/2017-Central Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28^th June, 2017 and was last amended by notification No.03/2020- Central Tax(Rate), dated the 25^th March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number GSR 216(E), dated the 25^th March, 2020.

📚 Frequently Asked Questions (FAQs): Notification No. 01/2021- Central Tax (Rate)

Q1: What is Notification No. 01/2021 – Central Tax (Rate)?

Answer:
Notification No. 01/2021 – Central Tax (Rate), issued on 2nd June 2021, amended Notification No. 1/2017 – Central Tax (Rate).
✔ It revised GST rates for goods under Schedule I (2.5% CGST).
✔ It included Diethylcarbamazine (medicine) in the concessional list.
👉 Effective from 2nd June 2021.
For expert GST help, consult GST Professionals.

Q2: What change was made for toys under this notification?

Answer:
Against S. No. 259A in Schedule I, the entry in column (2) was updated to “9503”.
👉 This clarified that toys, puzzles, and models under HS Code 9503 attract 2.5% CGST (5% total GST).
For traders, GST Compliance ensures correct HSN classification.

Q3: Which medicine was added under concessional GST rates?

Answer:
The notification inserted a new entry in List 1:
✔ “Diethylcarbamazine” – an antiparasitic drug.
👉 It now attracts a reduced GST rate under Schedule I (2.5% CGST).
For pharma compliance, check GST Return Filing.

Q4: Why was this notification important?

Answer:
The objectives were:
✔ To provide relief in GST rates for essential medicines like Diethylcarbamazine.
✔ To update classification of toys (9503) for uniformity.
✔ To align GST schedules with HSN codes.
For SMEs, see MSME Registration.

Q5: From when was Notification 01/2021 effective?

Answer:
It came into effect on 2nd June 2021. Businesses dealing in toys and pharma had to update invoices, returns, and GST filings immediately.
Stay compliant with Digital Signature Certificate (DSC).

Q6: How does this connect with earlier GST amendments?

Answer:
Notification 03/2020 – CTR ➝ Previous amendment before 01/2021.
Notification 01/2021 – CTR ➝ Updated goods classification (toys & medicines).
Later notifications (02–06/2021) ➝ Covered service sector & Covid-19 relief.
For broader compliance, see Private Limited Company Compliance.

Q7: Who benefits from Notification 01/2021?

Answer:
✅ Toy manufacturers & traders – clarified GST rate under HS Code 9503.
✅ Pharmaceutical companies & patients – reduced GST on Diethylcarbamazine.
✅ Taxpayers – easier compliance with updated HSN codes.
For businesses, explore Setup Business.