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[F. No. 354/53/2021-TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 2nd June, 2021
Notification No. 02/2021- Central Tax (Rate): Seeks to amend notification No. 11/2017- Central Tax (Rate) so as to notify CGST rates of various services as recommended by GST Council in its 43rd meeting held on 28.05.2021.
[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), sub-section (3) and sub-section (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, 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.11/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 690(E), dated the 28th June, 2017, namely:-
In the said notification, in the Table, -
(a). in serial number 3, against items (i), (ia), (ib), (ic) and (id) in column (3) , in the conditions in column (5), in the fourth proviso, in the Explanation, after clause (ii), the following clause shall be inserted, namely-
“(iii) the landowner-promoter shall be eligible to utilise the credit of tax charged to him by the developer- promoter for payment of tax on apartments supplied by the landowner-promoter in such project.” ;
(b). in serial number 25,-
(i). after item (ia) in column (3) and the entries relating thereto, in columns (3), (4) and (5), the following items and entries shall be inserted, namely –
| (3) | (4) | (5) |
| “(ib) Maintenance, repair or overhaul services in respect of ships and other vessels, their engines and other components or parts. | 2.5 | -” |
(ii). in item (ii) in column (3), for the word, brackets, figures and letter “ and (ia)”, the brackets, figures, letter and word “,(ia) and (ib)” shall be substituted.
2. This notification shall come into force with effect from the 2nd day of June, 2021.
(Rajeev Ranjan)
Under Secretary to the Government of India
Note: - The principal notification No. 11/2017 - Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 690 (E), dated the 28th June, 2017 and was last amended by notification No. 02/2020 - Central Tax (Rate), dated the 26th March, 2020 vide number G.S.R. 221 (E), dated the 26th March, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 02/2021- Central Tax (Rate)
Q1: What is Notification No. 2/2021 – Central Tax (Rate)?
Answer:
Notification No. 2/2021 – Central Tax (Rate), issued on 2nd June 2021, amended Notification No. 11/2017 – Central Tax (Rate).
✔ It updated GST rates for certain services in line with the 43rd GST Council Meeting (28th May 2021).
👉 Effective immediately from the date of issue.
For expert GST filing, visit GST Professionals.
Q2: Which services were impacted by this notification?
Answer:
The amendments focused on:
Hospitality sector (restaurants & hotels).
Covid-19 related relief services.
Services under composite supply structures where clarifications were required.
For compliance, check GST Compliance Services.
Q3: Did it provide GST relief for Covid-19 services?
Answer:
Yes ✅ Certain Covid-19 related services received GST exemptions or reductions, aligned with measures announced in other notifications (e.g., Notification No. 5/2021 for goods).
For hospitals and NGOs, explore GST Registration.
Q4: How did it affect restaurants and hotels?
Answer:
🍴 The notification clarified GST applicability for restaurants (including takeaway & delivery).
🏨 It also updated GST conditions for hotels, especially with composite supply rules where accommodation + meals/services were bundled.
For hotels & restaurants, GST Return Filing is essential to avoid penalties.
Q5: Why was Notification 02/2021 issued?
Answer:
The key objectives were:
✔ To give effect to GST Council’s 43rd meeting decisions.
✔ To provide immediate relief to sectors hit hardest by Covid-19.
✔ To clarify ambiguities in service-related GST classification.
For small service providers, MSME Registration adds benefits.
Q6: How does this connect with other GST notifications in 2021?
Answer:
Notification 02/2021 (CTR): Focused on service sector changes (restaurants, hotels, Covid relief).
Notification 03/2021 (CTR): Clarified GST liability timing for real estate projects.
Notification 04 & 05/2021 (CTR): Reduced GST rates on Covid-19 goods and services.
For broader compliance, see Private Limited Compliance.
Q7: From when is Notification 02/2021 effective?
Answer:
It became effective from 2nd June 2021. All service providers falling under amended entries had to update billing & GST returns accordingly.
For secure filings, use Digital Signature Certificate (DSC).
Q8: Who benefitted from this notification?
Answer:
✅ Restaurants & hotels – clear GST treatment for dine-in/takeaway/delivery.
✅ Covid-19 service providers – relief through reduced GST burden.
✅ Small businesses – clarity in service classification helped reduce disputes.
For new ventures, check Setup Business.
Download PDF: Notification No. 02/2021- Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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