Notification No. 04/2021 – IGST Rate Cut on COVID Services

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Notification No. 04/2021 - Integrated Tax (Rate): Seeks to amend notification No. 08/2017- Integrated Tax (Rate) so as to notify GST rates of various services as recommended by GST Council in its 44th meeting held on 12.06.2021.

[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), (3) and subsection (4) of section 5, sub-section (1) of section 6 and clauses (iii), (iv) and (xxv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (5) of section 15, subsection (1) of Section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do,

hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.08/2017- Integrated Tax (Rate), dated the 28^thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 683(E), dated the 28^thJune, 2017, namely:-

2. In the said notification, in the Table, against serial number 3, in column (3), in item (iv), after clause (f), the following shall be inserted, namely, -

“ Provided that during the period beginning from the 14^th June, 2021 and ending with the 30^th September, 2021, the integrated tax on service of description as specified in clause (f), shall, irrespective of rate specified in column (4), be levied at the rate of 5 per cent.’’.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: -The principal notification No. 8/2017 - Integrated Tax (Rate), dated the 28^thJune, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 683(E), dated the 28^th June, 2017 and was last amended by Notification No. 02/2021- Integrated Tax (Rate), the 2^nd June, 2021 vide number G.S.R. 378(E), dated the 2^nd June, 2021.

📚 Frequently Asked Questions (FAQs): Notification No. 04/2021 - Integrated Tax (Rate)

Q1: What is Notification No. 04/2021 – Integrated Tax (Rate)?

Answer:
Notification No. 04/2021 – Integrated Tax (Rate), issued on June 14, 2021, amends Notification No. 8/2017 – IGST (Rate) to temporarily reduce the GST rate on certain healthcare-related services from the standard rate to 5%.
The change followed recommendations from the 44th GST Council Meeting held on 12th June 2021, focusing on COVID-19 relief measures.
👉 For GST advisory, reach a GST Expert.

Q2: What is the key amendment introduced in this notification?

Answer:
The amendment inserts a proviso under serial number 3, item (iv), clause (f) in Notification 8/2017, stating:
“During the period from 14th June 2021 to 30th September 2021, the integrated tax on services described in clause (f) shall be levied at 5%, irrespective of the rate specified earlier.”
This effectively reduced the IGST rate to 5% for the specified services for this limited period.

Q3: What type of services were covered under clause (f) of item (iv)?

Answer:
Clause (f) of item (iv) under Notification 8/2017 covers services by way of transportation of goods, particularly essential goods and oxygen concentrators used in COVID-19 management.
Hence, this amendment temporarily reduced GST to 5% on transportation of essential COVID goods.
🚛 Businesses involved in logistics can ensure compliance via GST Compliance.

Q4: What was the time period of this reduced IGST rate?

Answer:
The reduced 5% IGST rate was applicable from 14th June 2021 to 30th September 2021.
After that, the standard rates prescribed earlier under Notification 8/2017 were reinstated.
📅 Always check current rates before invoicing with GST Return Filing.

Q5: Why was this rate reduction introduced?

Answer:
This temporary reduction aimed to:
Lower logistics and healthcare costs during the peak of the COVID-19 pandemic.
Ensure affordable transport of critical items such as oxygen, medical equipment, and medicines.
Provide economic relief to hospitals and healthcare service providers.
💊 For healthcare business setup, visit Setup Business.

Q6: How does this connect with Notification No. 02/2021 – IGST (Rate)?

Answer:
Notification No. 02/2021 – IGST (Rate), issued earlier in June 2021, provided GST relief for import of COVID-related goods.
Notification No. 04/2021 extended similar relief to services, ensuring consistency across goods and services during the pandemic.

Q7: Who benefited from this notification?

Answer:
✅ Beneficiaries included:
Hospitals & COVID treatment centers
Transport & logistics providers of medical essentials
NGOs and government agencies engaged in relief work
🚀 Streamline compliance through Online GST Registration.

Q8: What was the legal basis for issuing this notification?

Answer:
The notification was issued under the powers granted by:
Section 5 and Section 6 of the IGST Act, 2017
Sections 15, 16, and 148 of the CGST Act, 2017
This legal framework empowered the government to revise tax rates temporarily in public interest, especially under pandemic circumstances.

Q9: How can businesses ensure they availed this rate correctly?

Answer:
Businesses should:
Verify invoices between 14 June and 30 Sept 2021 reflect the 5% IGST rate.
Keep documentary proof showing services were covered under the relief category.
Ensure no mismatch during annual reconciliation or audits.
💼 For audit-ready filings, rely on Private Limited Compliance.

Q10: How does this notification align with the 44th GST Council Meeting decisions?

Answer:
The 44th GST Council Meeting made several recommendations to reduce GST rates on:
COVID medicines & oxygen concentrators
Testing kits and medical equipment
Transportation services for relief materials