Notification No. 01/2026 – Integrated Tax (Rate) Explained

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Notification No. 01/2026 - Integrated Tax (Rate): Seeks to amend Notification No 9/2025 - Integrated tax (Rate) to align them with changes made vide Finance Act, 2026 (as updated vide Corrigendum dated 06.05.2026)

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUBSECTION (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) 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, Ministry of Finance (Department of Revenue), No. 9/2025-Integrated Tax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number

G.S.R. 642(E), dated the 17^th September, 2025, namely: — In the said notification, -

in Schedule I - 5%,

against S. No. 150, for the entry in column (2), the entry “2202 99 21, 2202 99 29” shall be substituted;

against S. No. 151, for the entry in column (2), the entry “22029931, 22029939” shall be substituted;

In Schedule III – 40%,

against S. No. 2, for the entry in column (2), the entry “2202 91 00, 2202 99 91, 2202 99 99” shall be substituted;

against S. No. 3, for the entry in column (2), the entry “2202 99 91, 2202 99 99” shall be substituted.

2. This notification shall come into force from 1^st May, 2026.

[F. No. 190341/139/2026-TRU]
(Dheeraj Sharma)
Under Secretary

Note: The principal notification No. 09/2025-Integrated Tax (Rate), dated the 17^th September, 2025 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i) vide G.S.R. 642(E), dated the 17^th September, 2025 and was last amended vide Notification No. 19/2025-Integrated Tax (Rate) dated the 31^st December, 2025 vide G.S.R. 947(E), dated the 31^st December, 2025.

📚 Frequently Asked Questions (FAQs): Notification No. 01/2026 – Integrated Tax (Rate)

Q1: What is Notification No. 01/2026 – Integrated Tax (Rate)?

Answer: It is an IGST notification amending tariff classifications under Notification No. 9/2025.
The notification aligns IGST schedule entries with tariff changes introduced through the Finance Act, 2026.

Q2: What is the purpose of this notification?

Answer: The purpose is tariff alignment.
The Government revised IGST schedule references to match updated customs tariff classifications.

Q3: Does the notification change IGST rates?

Answer: Mainly, it revises tariff references rather than introducing broad rate changes.
However, classification changes can still impact tax treatment and compliance reporting.

Q4: Which businesses are most affected?

Answer: Importers and beverage-related businesses are mainly affected.
Businesses dealing in products under tariff heading 2202 should review classifications carefully.

Q5: When does the notification become effective?

Answer: The amendment becomes effective from 1 May 2026.
Businesses should update classification systems before this date.

Q6: Why are HSN codes important in IGST?

Answer: HSN codes determine proper tax classification.
Wrong HSN usage can create audit disputes, reporting mismatches, and compliance issues.

Q7: Will this affect imports?

Answer: Yes, especially import documentation and customs alignment.
Businesses should ensure customs and GST records use consistent tariff references.

Q8: Is this linked with the Finance Act, 2026?

Answer: Yes, directly.
The notification specifically aligns IGST schedules with tariff changes introduced under the Finance Act, 2026.

Q9: Does this impact e-invoicing?

Answer: Yes, indirectly.
Incorrect HSN mapping in ERP systems can create invoice reporting inconsistencies.

Q10: Can classification errors result in penalties?

Answer: Yes, in some situations.
Authorities may impose interest, penalties, or differential tax demands if classification mistakes affect tax treatment.

Q11: Is the notification applicable across India?

Answer: Yes, it applies nationally.
It governs IGST classification for inter-state supply and imports across India.

Q12: Do businesses need to amend old invoices?

Answer: Generally, the amendment applies prospectively from 1 May 2026.
However, transition-period documentation should still be reviewed carefully.

Q13: How can businesses avoid classification disputes?

Answer: Proper HSN review and documentation help significantly.
Businesses should regularly update product classification records and ERP mapping.

Q14: Is professional GST review useful for these amendments?

Answer: Yes, especially for importers and product-heavy businesses.
Professional review can help identify hidden classification and reporting risks.

Q15: Where can businesses get GST compliance support?

Answer: Businesses can seek expert GST assistance for classification and filing compliance.
Services like GST Registration and GST Compliance are often useful for maintaining proper GST records.

Conclusion

Notification No. 01/2026 – Integrated Tax (Rate) may appear technical, but practically it has important implications for businesses involved in imports and inter-state supplies.

In simple terms, the Government is ensuring that IGST schedules remain aligned with customs tariff changes introduced through the Finance Act, 2026.

Businesses should treat these amendments seriously because even small HSN mismatches can create audit exposure, customs-GST inconsistencies, and compliance notices later.