Notification No. 11/2021 – IGST Amendment on Food Distribution

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Notification No. 11/2021 - Integrated Tax (Rate): Seeks to amend notification No. 40/2017- Integrated 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 5 of the IGST Act, 2017 (13 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.40/2017-Integrated Tax (Rate), dated the 18^th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1311(E), dated the 18th October, 2017, namely:-

In the said notification, in the Table, against S. No. 1, -

(i). in column (3), for the entry, the entry “(a) Food preparations put up in unit containers and intended for free distribution to economically weaker sections of the society under a programmer duly approved by the Central Government or any State Government;

(b) Fortified Rice Kernel (Premix) supply for ICDS or similar scheme duly approved by the Central Government or any State Government.” shall be substituted;

(ii). in column (4), in the entry, for the words “food preparations” at both the places, where they occur, the word “goods” shall be substituted;

2. This notification shall come into force on the 1^stday of October, 2021.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: - The principal notification No. 40/2017-Integrated Tax (Rate), dated the 18^th October, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1311(E), dated the 18^th October, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 11/2021 - Integrated Tax (Rate)

Q1: What is Notification No. 11/2021 – Integrated Tax (Rate)?

Answer:
Notification No. 11/2021 – Integrated Tax (Rate), issued on 30th September 2021, amends Notification No. 40/2017 – IGST (Rate). It updates the scope of IGST exemption on food preparations distributed under government-approved programsnotfctn-11-2021-igst-rate-engli….
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Q2: What goods are covered under this amendment?

Answer:
The amendment clarifies exemption for:
Food preparations in unit containers distributed free to economically weaker sections under a government-approved program.
Fortified Rice Kernel (Premix) supplied for ICDS (Integrated Child Development Services) or similar schemes approved by the Central or State Governments.
🌾 For compliance help, explore GST Compliance Services.

Q3: What is the change made in column (3) of the notification table?

Answer:
The entry was substituted to clearly specify:
(a) Food preparations in unit containers meant for free distribution.
(b) Fortified Rice Kernel supply for ICDS or similar programs.
This ensures clarity on goods qualifying for exemption.

Q4: What change was made in column (4)?

Answer:
In column (4), the word “food preparations” was replaced with “goods” at both places. This expands the exemption coverage to include fortified rice and similar nutritional products under welfare schemes.

Q5: From when is this notification effective?

Answer:
The amendment under Notification No. 11/2021 – Integrated Tax (Rate) came into effect from 1st October 2021.
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Q6: How does this notification impact government welfare programs?

Answer:
The amendment strengthens nutrition-focused schemes like:
ICDS (Integrated Child Development Services)
State government food distribution programs
Public welfare initiatives aimed at economically weaker sections
By exempting fortified rice kernel and packaged food goods, it lowers distribution cost and ensures affordable nutrition.

Q7: Why was Fortified Rice Kernel (Premix) specifically included?

Answer:
Fortified Rice Kernel is used in schemes addressing malnutrition and anemia. Its inclusion ensures government nutrition programs aren’t burdened with additional GST, allowing wider distribution.
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Q8: How does this connect to Notification 40/2017?

Answer:
Notification 40/2017 – IGST (Rate) originally exempted food preparations under certain schemes.
Notification 11/2021 refines and broadens this scope by explicitly including fortified rice kernels and expanding the term “food preparations” to “goods.”

Q9: Who benefits most from this amendment?

Answer:
Government agencies & NGOs distributing fortified food.
Suppliers of fortified rice kernel premix for ICDS and welfare programs.
Beneficiaries in rural and economically weaker communities receiving tax-free nutritional food.

Q10: How can businesses ensure compliance with this exemption?

Answer:
Businesses should:
Verify if their supplies fall under government-approved schemes.
Classify goods correctly in GST invoices.
Maintain documentation of scheme approval for exemption claims.
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Q11: How can Finodha assist suppliers under this notification?

Answer:
Finodha provides:
GST advisory on exemptions & classification.
Return filing & compliance support for suppliers in welfare schemes.
End-to-end services from Online GST Registration to Income Tax Return Filing.

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