Notification No. 01/2022 – Integrated Tax (Rate) Update

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

Notification No. 01/2022 - Integrated Tax (Rate): Seeks to amend notification No. 1/2017-Integrated 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 5 of the Integrated Goods and Services Tax Act, 2017 (13 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 28^th 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 28^th June, 2017, namely:-

In the said notification, -

in Schedule I – 5%, serial numbers 225B,226, 227, 228 and the entries relating thereto shall be omitted;

in Schedule II – 12%, 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-Integrated 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. 666(E), dated the 28^th June, 2017, and was last amended by notification No. 21/2021 – Integrated 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. 921(E), dated the 31^st December, 2021.

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

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

Answer:
This notification, issued on 31st March 2022, amends Notification No. 1/2017 – Integrated Tax (Rate). It primarily restructures GST rates applicable to fly ash bricks, building bricks, roofing tiles, and similar products, effective 1st April 2022.

Q2: Which items were removed from Schedule I (5%) under this notification?

Answer:
Serial numbers 225B, 226, 227, and 228 were omitted from the 5% GST category. This effectively shifted certain brick and tile products out of the lower tax slab.

Q3: What new items were added to Schedule II (12%)?

Answer:
The following entries were inserted under the 12% GST slab:
Fly ash bricks or aggregates with 90% or more fly ash content
Fly ash blocks
Bricks of fossil meals or similar siliceous earths
Building bricks
Earthen or roofing tiles

Q4: From when is this notification applicable?

Answer:
The changes notified under Notification No. 01/2022 – Integrated Tax (Rate) came into effect on 1st April 2022.

Q5: How does this amendment impact the brick kiln industry?

Answer:
The brick industry now faces a higher GST slab (12%) for most products. This move aligns with the 45th GST Council recommendations to bring uniformity and discourage tax leakages in the unorganized brick sector.

Q6: Why were fly ash bricks specifically highlighted in this notification?

Answer:
Fly ash bricks are an eco-friendly building material promoted by the government. However, their movement into the 12% tax bracket ensures parity with other bricks and prevents misclassification of goods for tax evasion.

Q7: How will this affect builders and contractors?

Answer:
Since bricks and tiles are essential raw materials for construction, the cost of housing and infrastructure projects may increase slightly due to the higher GST rate. Contractors must account for this while filing their GST returns.

Q8: Does this impact ITC (Input Tax Credit) for suppliers?

Answer:
Yes ✅. Suppliers can continue to avail ITC on inputs and services, but since the output tax rate is now 12%, the ITC chain becomes stronger and more transparent. Businesses must ensure proper GST compliance to avoid penalties.

Q9: How can small brick manufacturers stay compliant under GST?

Answer:
Small manufacturers should:
Register under GST if turnover exceeds threshold.
File returns regularly through GST experts.
Maintain invoices aligned with the revised rate structure.
Explore MSME registration for additional government benefits.

Q10: Where can taxpayers seek expert guidance on these changes?

Answer:
Taxpayers can consult GST Professionals at Finodha for assistance in GST registration, compliance, and return filing to ensure smooth adaptation to the new rate structure.