Notification No. 01/2022 – GST Rate Amendment Explained

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Notification No. 01/2022 - Central Tax (Rate): Seeks to amend notification No. 1/2017-Central Tax (Rate)

[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 of the CGST 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%, serial numbers 225B,226, 227, 228 and the entries relating thereto shall be omitted;

in Schedule II – 6%, after serial number 176A and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: -

“176B	6815	Fly ash bricks or fly ash aggregate with 90 per cent. or more fly ash content; Fly ash blocks
176C	6901 00 10	Bricks of fossil meals or similar siliceous earths
176D	6904 10 00	Building bricks
176E	6905 10 00	Earthen or roofing tiles”.

2. This notification shall come into force on the 1^st day of April, 2022.

(Vikram Vijay Wanere)
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. 21/2021 – Central Tax (Rate), dated the 31^st December, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 920(E), dated the 31^st December, 2021.

📚 Frequently Asked Questions (FAQs): Notification No. 01/2022 - Central Tax (Rate)

Q1: What is Notification No. 01/2022 – Central Tax (Rate)?

Answer:
Notification No. 01/2022 – Central Tax (Rate), issued on 31st March 2022, amends Notification No. 1/2017 – Central Tax (Rate). It updates the GST rate schedules to align with the latest decisions of the GST Council and ensures uniform application of tax rates across certain goods and services.

Q2: Why was this amendment necessary?

Answer:
The amendment was introduced to clarify tax rates, correct anomalies, and align GST law with policy updates recommended by the GST Council. Such updates help avoid disputes and ensure smooth GST compliance for businesses.

Q3: Which earlier notification does it amend?

Answer:
It specifically amends Notification No. 1/2017 – Central Tax (Rate) dated 28th June 2017, which was the original framework prescribing GST rates for goods.

Q4: From when is Notification No. 01/2022 – Central Tax (Rate) effective?

Answer:
The notification came into effect on 1st April 2022. Businesses were required to adopt the revised provisions from this date.

Q5: Does this notification change GST rates on goods or services?

Answer:
Yes ✅. While the notification primarily amends references, it also impacts the applicable GST rate slabs on specific goods and services, especially where clarifications or reclassifications were needed.

Q6: How does this notification impact compliance for businesses?

Answer:
Businesses must ensure they:
Apply the correct GST rates post-amendment.
Update billing and accounting software to reflect changes.
File accurate returns to avoid penalties.
👉 You can consult a GST Expert for correct implementation.

Q7: What happens if a business continues to use old rates after 1st April 2022?

Answer:
Using outdated GST rates can lead to short payment of tax, interest liabilities, and penalties under GST law. It is advisable to stay updated through GST Compliance services.

Q8: How does Notification 01/2022 connect with other 2022 GST updates?

Answer:
This amendment is part of a series of notifications (02/2022, 03/2022, 04/2022, etc.) that revised rates, exemptions, and conditions on bricks, tiles, and other goods. Together, they modernize GST law to suit evolving industry needs.

Q9: Where should businesses declare transactions affected by this notification?

Answer:
Businesses must report transactions at the updated GST rates in their GSTR-1 (outward supply) and GSTR-3B (monthly/quarterly summary). To avoid errors, many businesses opt for assisted GST Return Filing.

Q10: What support is available for businesses impacted by this amendment?

Answer:
Businesses can get help with:
GST Registration for new entities.
Private Limited Compliance if registered as companies.
MSME Registration for small businesses.
Income Tax Return Filing to align GST and tax compliance.