Notification No. 03/2020 - Integrated Tax (Rate) Explained

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Notification No. 03/2020 - Integrated Tax (Rate): Seeks to amend notification No. 1/2017-Union Territory Tax (Rate) to prescribe change in UTGST rate of goods

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 sub-section (1) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with 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 in the Ministry of Finance (Department of Revenue), No.1/2017- Integrated 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. 666 (E), dated the 28^th June, 2017, namely:-

In the said notification, -

in Schedule I - 5%, serial number 187 and the entries relating thereto shall be omitted;

in Schedule II - 12%,-

after serial number 75 and the entries relating thereto, the following serial number and entries shall be inserted, namely :-

“75A.

3605 00 10

All goods”;

serial numbers 202 and 203 and the entries relating thereto shall be omitted; (c)in Schedule III - 18%,-

serial number 73 and the entries relating thereto shall be omitted;

in serial number 379, for the entry in column (3), the entry “All goods” shall be substituted;

2. This notification shall come into force on the 1^st day of April, 2020.

(Gaurav Singh)
Deputy 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. 01/2020- Integrated Tax(Rate), dated the 21^st February, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number GSR 135(E), dated the 21^st February, 2020.

📚 Frequently Asked Questions (FAQs): Notification No. 03/2020 - Integrated Tax (Rate)

Q1: What is Notification No. 03/2020 – Integrated Tax (Rate)?

Answer:
It changes IGST tax rates on goods by modifying rate schedules under Notification 01/2017 – IGST (Rate).
notfctn-03-2020-igst-rate-engli…

Q2: From when is it applicable?

Answer:
From 01 April 2020.
notfctn-03-2020-igst-rate-engli…

Q3: Which goods were impacted the most?

Answer:
Products under HSN 3605 00 10 — now 12% IGST.

Q4: Do these changes affect GST refunds?

Answer:
Yes — refund rate depends on correct classification.

Q5: Should businesses update their product HSN mapping?

Answer:
Absolutely ✔ to avoid penalties & audit issues.

Q6: Does this affect input tax credit (ITC)?

Answer:
Yes — wrong rate → ITC reversal risk 🔄

Q7: Any change in luxury or sin goods?

Answer:
Indirectly — through rate schedule reshuffling.

Q8: What document should be referred for detailed rate table?

Answer:
Notification 01/2017 – IGST Rate (as amended).

Q9: Impact on MSMEs?

Answer:
MSMEs must revise invoices and tax codes in ERP immediately.
👉 https://finodha.in/online-udyam-udyog-aadhar-msme-registration/

Q10: Does this change impact import duty?

Answer:
Yes — IGST paid at import also adopts new rates.

Q11: Will delayed compliance lead to notices?

Answer:
Very likely — discrepancies get flagged in GST audit 📌

Q12: Does this impact traders in Union Territories?

Answer:
Yes — IGST applies inter-state & imports into UTs.

Q13: Do SEZ units also need classification update?

Answer:
Yes — for zero-rated supply documentation.

Q14: Is LUT/Bond required for exports of these goods?

Answer:
Yes — if exporting without paying IGST.
👉 https://finodha.in/gst-return-filing/

Q15: Can Finodha assist in HSN reclassification?

Answer:
Yes ✔
We update HSN → GST ERP → Return compliance end-to-end.
👉 https://finodha.in/gst-compliance/

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