Notification No. 03/2019 - Integrated Tax Explained

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Notification No. 03/2019 – Integrated Tax: Seeks to amend notification No. 10/2017-Integrated Tax dated 13.10.2017 in view of bringing into effect the amendments (to align Special Category States with the explanation in section 22 of CGST Act, 2017) in the GST Acts

GST: [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 section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 23 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 amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 10/2017-Integrated Tax, dated the 13^th October, 2017, published in the Gazette of India, Extraordinary, vide number G.S.R. 1260 (E), dated the 13^th October, 2017, namely: -

In the said notification, in the proviso, for the words, brackets, letters and figures “sub-clause

(g) of clause (4) of article 279A of the Constitution, other than the State of Jammu and Kashmir”, words, brackets and figures “the first proviso to sub-section (1) of section 22 of the said Act, read with clause (iii) of the Explanation to the said section” shall be substituted.

2. This notification shall come into force with effect from the 1^st day of February, 2019.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

Note: - The principal notification No. 10/2017-Integrated Tax dated the 13^th October, 2017, was published in the Gazette of India, Extraordinary, vide number G.S.R. 1260 (E), dated the 13^th October, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 03/2019 - Integrated Tax

Q1: What is Notification No. 03/2019 – Integrated Tax?

Answer:
It amends Notification No. 10/2017 – Integrated Tax to align IGST registration exemptions for Special Category States with Section 22 of the CGST Act, effective 1 February 2019 notfctn-3-2019-igst-english.

Q2: From which date is this notification applicable?

Answer:
The notification is applicable from 1 February 2019.

Q3: What was Notification No. 10/2017 – Integrated Tax about?

Answer:
It granted registration exemptions under IGST to certain persons making inter-State supplies, subject to conditions.

Q4: What is the key change made by Notification No. 03/2019?

Answer:
It replaces the constitutional reference with a statutory reference to Section 22 of the CGST Act, ensuring consistency.

Q5: Which states are considered Special Category States under Section 22?

Answer:
As per Explanation (iii) to Section 22, Special Category States include:
Arunachal Pradesh
Manipur
Meghalaya
Mizoram
Nagaland
Sikkim
Tripura
Uttarakhand
📌 Earlier references to Jammu & Kashmir were removed due to legislative changes.

Q6: What is the GST registration threshold for Special Category States?

Answer:
₹10 lakh aggregate turnover (instead of ₹20 lakh for normal states)

Q7: Does this notification change the turnover threshold itself?

Answer:
No ❌.
It does not change thresholds, only aligns references used in IGST notifications.

Q8: Who benefits from this amendment?

Answer:
Small businesses
Service providers
Startups
operating from Special Category States and making inter-State supplies.

Q9: Does this impact GST registration requirements?

Answer:
Yes ✅, indirectly.
Registration exemption under IGST must now be read strictly with Section 22 of CGST Act.
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Q10: Can you explain with a simple example?

Answer:
📌 Example:
A consultant in Meghalaya with turnover of ₹9 lakh making inter-State supplies:
👉 Registration exemption under IGST is evaluated using Section 22 CGST, not constitutional provisions.

Q11: Does this amendment affect existing registrations?

Answer:
No ❌.
It applies prospectively and does not invalidate existing GST registrations.

Q12: Is this amendment linked to GST Council decisions?

Answer:
Yes ✅.
The notification was issued on recommendations of the GST Council.

Q13: Does this affect GST return filing?

Answer:
Indirectly. Correct registration status determines whether GST returns are required.
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Q14: Does this notification apply only to goods or services?

Answer:
It applies to both goods and services, wherever IGST registration exemptions are involved.

Q15: Who should carefully review Notification No. 03/2019 – Integrated Tax?

Answer:
Businesses in Special Category States
GST consultants
Compliance teams handling inter-State supplies
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