Notification No. 09/2021 – Central Tax (Rate) Explained

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Notification No. 09/2021 - Central Tax (Rate): Seeks to Amend Notification No. 2/2017- Central Tax (Rate)

[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 11 of the CGST 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.2/2017-Central Tax (Rate), dated the 28^th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 674(E), dated the 28^th June, 2017, namely:-

In the said notification, in the Schedule, for S. No. 86 and the entries relating thereto, the following S. No. and entries thereto shall be substituted, namely: -

“86.

1209

Seeds, fruit and spores, of a kind used for sowing Explanation: This entry does not cover seeds meant for any use other than sowing.”;

2. This notification shall come into force on the 1st day of October, 2021.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: - The principal notification No. 2/2017-Central 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. 674(E), dated the 28^thJune, 2017, and was last amended vide notification No. 15/2019-Central Tax (Rate) dated the 30^th September, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.712(E), dated the 30^th September, 2019.

📚 Frequently Asked Questions (FAQs): Notification No. 09/2021- Central Tax (Rate)

Q1: What is Notification No. 09/2021 – Central Tax (Rate)?

Answer:
Notification No. 9/2021 – Central Tax (Rate), dated 30th September 2021, amends Notification No. 2/2017–Central Tax (Rate). It substitutes entry S. No. 86, clearly exempting “Seeds, fruits and spores, of a kind used for sowing” under GST. 🌾

Q2: From when is this notification effective?

Answer:
The notification came into force on 1st October 2021. All supplies of seeds used exclusively for sowing purposes are covered under this exemption.

Q3: What does the amendment clarify regarding seeds?

Answer:
The amendment makes it clear that:
GST exemption applies only to seeds used for sowing.
If seeds are used for any other purpose (like food, oil extraction, or processing), they will not be covered under this exemption.

Q4: Which seeds are included under this exemption?

Answer:
The exemption applies to all seeds classified under HS Code 1209, including:
Vegetable seeds
Fruit seeds
Spores for sowing

Q5: Why was this clarification necessary?

Answer:
Prior to this notification, there was confusion among traders, farmers, and GST professionals about whether processed or non-sowing seeds would also be exempt. This amendment removes ambiguity and provides certainty. ✅

Q6: How does this impact farmers and seed suppliers?

Answer:
Farmers benefit from reduced costs on sowing seeds since GST is not applicable.
Seed suppliers must maintain proper documentation to prove that seeds are meant for sowing.
It prevents misuse of exemption by those selling seeds for consumption.

Q7: How does this notification connect with earlier amendments?

Answer:
The principal notification (No. 2/2017 – CT Rate) provided the base exemption list.
It was last amended by Notification No. 15/2019 – CT (Rate).
Now, Notification No. 9/2021 – CT (Rate) further clarifies and strengthens exemptions for agriculture inputs.

Q8: What should businesses dealing in seeds do now?

Answer:
Ensure they classify goods correctly under HS Code 1209.
Keep clear invoices stating seeds are for sowing.
Seek expert GST compliance guidance to avoid disputes. You can consult a GST Expert for smooth compliance.