Notification No. 11/2022 – Central Tax (Rate) Explained

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Notification No. 11/2022 - Central Tax (Rate): Rescinds notification No. 45/2017- Central Tax (Rate)

[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

G.S.R. (E).-In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 45/2017-Central Tax (Rate), dated the 14^th November, 2017, published in the Gazette of India, Extraordinary, vide number G.S.R.1391(E), dated the 14^th November, 2017, except as respects things done or omitted to be done before such rescission.

2. This notification shall come into force on the 18^th day of July, 2022.

(Vikram Vijay Wanere)
Under Secretary to
the Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 11/2022 - Central Tax (Rate)

Q1: What is Notification No. 11/2022 – Central Tax (Rate)?

Answer:
Notification No. 11/2022 – Central Tax (Rate), issued on 13th July 2022, rescinds the earlier Notification No. 45/2017 – Central Tax (Rate). This change was made by the Ministry of Finance on recommendations of the GST Council and took effect from 18th July 2022.

Q2: What was Notification No. 45/2017 about?

Answer:
Notification No. 45/2017, dated 14th November 2017, provided GST exemptions/concessions to certain organizations (like public institutions and research bodies). With its rescission through Notification 11/2022, those exemptions no longer apply from 18th July 2022.

Q3: Why was Notification No. 45/2017 rescinded?

Answer:
The GST Council periodically reviews exemptions. The withdrawal ensures a wider tax base, simplified GST structure, and uniform application of GST rules, minimizing revenue leakages and complexities in compliance.

Q4: From when is Notification No. 11/2022 effective?

Answer:
This notification came into force on 18th July 2022. Businesses availing earlier exemptions under Notification 45/2017 must now comply with GST rules from this date onwards.

Q5: How will this affect taxpayers?

Answer:
Taxpayers who earlier enjoyed exemptions under 45/2017 must now charge and pay GST.
Increased compliance requirements under GST returns and records.
Possible rise in cost of goods/services that were earlier tax-free.
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Q6: Does Notification 11/2022 affect all businesses?

Answer:
No. It mainly impacts entities that previously benefited from the exemptions under Notification 45/2017. Small businesses with AATO below prescribed limits and regular GST filers continue with their standard compliance. For new businesses, GST Registration remains essential.

Q7: How can businesses ensure smooth compliance after this change?

Answer:
✅ Recheck all invoices post 18th July 2022.
✅ Update ERP/accounting systems to include GST charges.
✅ File accurate GST Returns within due dates.
✅ Take help from Finodha GST Experts to avoid penalties.