Notification No. 11/2021 - UTTR GST Update

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Notification No. 11/2021 - Union territory Tax (Rate): Seeks to amend notification No. 39/2017- 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 7 of the UTGST Act, 2017 (14 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.39/2017-Union territory 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. 1312(E), dated the 18^th October, 2017, namely:-

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

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;

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 1st day of October, 2021.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: - The principal notification No. 39/2017-Union territory 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. 1312(E), dated the 18^th October, 2017.

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

Q1️⃣: What is Notification No. 11/2021 – Union Territory Tax (Rate)? 🧾

Answer:
This notification amends Notification No. 39/2017 – UTGST (Rate) to update GST treatment for food preparations and fortified rice distributed under Central or State Government-approved welfare programs.
It ensures concessional or exempt GST rates for goods meant for free distribution to economically weaker sections.
👉 For expert GST guidance, visit Finodha GST Professionals.

Q2️⃣: When was this notification issued and when did it come into effect? 📅

Answer:
It was issued on 30th September 2021 and came into force from 1st October 2021.
This timing aligns with India’s broader effort to improve food subsidy and nutrition delivery under government welfare schemes.

Q3️⃣: Which earlier notification was amended by this one? 🔄

Answer:
It amends Notification No. 39/2017 – Union Territory Tax (Rate) dated 18th October 2017, which initially provided GST exemptions and concessional rates on charitable food distribution.

Q4️⃣: What are the key changes made under Notification No. 11/2021? ⚙️

Answer:
The amendment makes the following updates:
✅ Adds new entries for Fortified Rice Kernel (FRK) and food preparations for government programs.
✅ Substitutes the word “food preparations” with “goods” for broader inclusion.
✅ Expands GST relief to all essential food items used in approved schemes like ICDS and Mid-Day Meal.
(Focus Keywords: Notification No. 11/2021 – Union Territory Tax (Rate), GST fortified rice amendment)

Q5️⃣: What is Fortified Rice Kernel (FRK)? 🍚

Answer:
Fortified Rice Kernel (FRK) refers to rice blended with essential vitamins and minerals such as Iron, Folic Acid, and Vitamin B12.
It is distributed through schemes like ICDS, Mid-Day Meal, and Public Distribution System (PDS) to combat malnutrition.
Under this notification, FRK supplied for these schemes is GST exempt or charged at concessional rates.

Q6️⃣: Who benefits from this notification? 👩‍👩‍👧‍👦

Answer:
This notification benefits:
✅ Government departments implementing welfare programs,
✅ Manufacturers and suppliers of fortified rice and nutritional goods, and
✅ Economically weaker sections receiving free food under schemes like ICDS or PDS.
For compliance support, visit GST Compliance Services.

Q7️⃣: How does this amendment promote government nutrition schemes? 🍲

Answer:
It reduces the tax burden on suppliers of fortified food items, allowing government agencies to:
✅ Procure more nutritious products,
✅ Lower overall program costs, and
✅ Ensure better food quality reaches children and pregnant women under ICDS and Mid-Day Meal schemes.

Q8️⃣: What is the role of ICDS and similar schemes in this notification? 🏛️

Answer:
The Integrated Child Development Services (ICDS) and similar schemes are government-approved nutrition programs.
Under this amendment, food preparations and FRKs supplied to these schemes are eligible for GST exemption or concessional rates, improving affordability and accessibility.
For business registration to supply such goods, check Setup Business in India.

Q9️⃣: What change was made in terminology under column (4)? 📝

Answer:
In the original notification, the term “food preparations” was replaced with the broader term “goods”.
This ensures that all food-related supplies, including fortified items, are covered under the GST exemption framework, providing clarity for suppliers and tax authorities.
(Focus Keywords: Notification No. 11/2021 – Union Territory Tax (Rate), GST goods substitution amendment)