Important Keyword: Notification No. 09/2021 – Union Territory Tax (Rate), GST on seeds, UTGST amendment 2021, sowing exemption, CBIC GST update, Notification No. 09/2021 – Union Territory Tax (Rate), GST seeds exemption, sowing GST clarification, UTGST 2021 amendment, CBIC GST agriculture update, Notification 2/2017 UTGST amendment, Finodha GST experts,
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[F.No.190354/206/2021-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 30thSeptember, 2021
Notification No. 09/2021 - Union Territory Tax (Rate): Seeks to amend notification No. 2/2017- Union territory 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 8 of the UTGST Act, 2017 (14 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-Union territory Tax (Rate), dated the 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 711(E), dated the 28thJune, 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-Union Territory Tax (Rate), dated the 28thJune, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 711(E), dated the 28thJune, 2017, and was last amended vide notification No. 15/2019-Union Territory Tax (Rate) dated the 30thSeptember, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 714(E), dated the 30thSeptember, 2019.
📚 Frequently Asked Questions (FAQs): Notification No. 09/2021 - Union Territory Tax (Rate)
Q1️⃣: What is Notification No. 09/2021 – Union Territory Tax (Rate)? 🧾
Answer:
This notification amends Notification No. 2/2017 – UTGST (Rate) to clearly exempt seeds, fruits, and spores used for sowing from GST.
It substitutes Serial No. 86 with a new entry specifying that only seeds meant for sowing are exempt, while those for other uses (like food or processing) remain taxable.
👉 For expert GST advice, visit Finodha GST Professionals.
Q2️⃣: When does Notification No. 09/2021 come into effect? 📅
Answer:
The notification became effective from 1st October 2021, providing an updated GST exemption structure for seeds and agricultural inputs.
Q3️⃣: Which earlier notification does it amend? 🔄
Answer:
It amends Notification No. 2/2017 – Union Territory Tax (Rate) dated 28th June 2017, which originally provided exemptions for essential goods including agricultural products.
Q4️⃣: What is the key change introduced in this notification? ⚙️
Answer:
The key change is the replacement of Serial No. 86, which now reads:
“Seeds, fruit and spores, of a kind used for sowing.”
An Explanation has been added stating:
“This entry does not cover seeds meant for any use other than sowing.” 🌱
This ensures that only sowing-grade seeds enjoy GST exemption.
(Focus Keywords: Notification No. 09/2021 – Union Territory Tax (Rate), GST exemption seeds, sowing seeds update)
Q5️⃣: Why was this clarification necessary? 💡
Answer:
Earlier, ambiguity existed on whether processed or consumable seeds (like sunflower, groundnut, or soybean seeds used for food/oil) were exempt.
This notification clarifies that only seeds used for sowing are GST-free, while those used for edible or industrial purposes will attract applicable GST rates.
For compliance clarity, visit GST Compliance Services.
Q6️⃣: Who benefits from Notification No. 09/2021? 👨🌾👩🌾
Answer:
The beneficiaries include:
✅ Farmers and agricultural cooperatives — buying sowing seeds GST-free.
✅ Seed manufacturers and suppliers — who now have clear classification guidance.
✅ Agri-businesses involved in seed distribution under government programs.
For business registration, explore Setup Business in India.
Q7️⃣: What is the HSN code mentioned under this notification? 📘
Answer:
The relevant HSN Code for the exempted item is 1209, covering:
“Seeds, fruit and spores, of a kind used for sowing.”
This classification helps businesses accurately file returns and avoid GST misinterpretation.
For help in HSN-based GST filing, visit GST Return Filing.
Q8️⃣: How does this change impact agri-commodity traders? 🚜
Answer:
✅ Simplifies classification of sowing vs. edible seeds.
✅ Helps avoid tax disputes during audits.
✅ Reduces cost burden on farmers and agri-cooperatives.
✅ Promotes transparent trade practices in the seed industry.
Q9️⃣: What happens if seeds are used for non-sowing purposes? ⚠️
Answer:
If the seeds are sold or used for food, oil extraction, or other processing, they will not be exempt under this entry.
Such goods must be taxed as per applicable GST rates, based on their final usage and classification.
For GST audit preparation, visit Private Limited Compliance.
Q🔟: Where can businesses get professional GST guidance on this update? 💼
Answer:
You can connect with Finodha GST Experts for:
🧾 GST Registration
💼 GST Compliance
📊 Income Tax Return (ITR)
💻 Digital Signature Certificate (DSC)
🏢 MSME Registration
Download PDF: Notification No. 09/2021 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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