Notification No. 13/2021 – Central Tax (Rate) GST Amendment

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Notification No. 13/2021 - Central Tax (Rate): Seeks to amend Notification No 1/2017- Central Tax (Rate) dated 28.06.2017.

[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 9 and subsection (5) of section 15 of the Central Goods and Services Tax 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.1/2017-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. 673(E), dated the 28^th June, 2017, namely:-

In the said notification, -

in Schedule II – 6%, S. No. 243 and the entries relating thereto shall be omitted;

in Schedule III – 9%, against S. No. 452P, in column (3), the words “in respect of Information Technology software” shall be omitted.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: - The principal notification No.1/2017-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. 673(E), dated the 28^th June, 2017, and was last amended by notification No. 08/2021 – Central Tax (Rate), dated the 30^th September, 2021,published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 693(E)., dated the 30^th September, 2021.

📚 Frequently Asked Questions (FAQs): Notification No. 13/2021- Central Tax (Rate)

Q1: What is Notification No. 13/2021 – Central Tax (Rate)?

Answer:
Notification No. 13/2021 – Central Tax (Rate), issued on 27th October 2021, amended Notification No. 1/2017 – Central Tax (Rate).
✔ It omitted an entry from Schedule II (6%).
✔ It also removed the phrase “in respect of Information Technology software” from Schedule III (9%).
For expert GST advisory, consult GST Professionals.

Q2: What change was made in Schedule II (6%)?

Answer:
The notification omitted Serial No. 243 and related entries from Schedule II (6% GST rate). This streamlined the classification and reduced confusion for taxpayers.
For smooth GST classification & filing, check GST Compliance Services.

Q3: What was the amendment in Schedule III (9%)?

Answer:
Against Serial No. 452P, the words “in respect of Information Technology software” were omitted.
👉 This means IT software is now treated differently under GST classification, removing earlier restrictions.
For IT sector businesses, GST Return Filing ensures compliance with latest changes.

Q4: Why was Notification 13/2021 issued?

Answer:
The amendment was introduced to:
✔ Clarify classification of IT software under GST.
✔ Omit redundant or confusing entries in the schedules.
✔ Ensure consistency with HSN codes and GST Council decisions.
For startups in IT, Online GST Registration ensures easy compliance.

Q5: How does this notification impact IT/software companies?

Answer:
💻 IT/software service providers must:
✔ Revisit GST rate applicability post-October 2021.
✔ Ensure invoices and returns reflect updated classification.
✔ Avoid using obsolete references like “in respect of IT software” in compliance documents.
Tech companies can also check Setup Business for structured GST planning.

Q6: From when did Notification No. 13/2021 become effective?

Answer:
The notification came into force on the date of issue, 27th October 2021. Businesses had to comply immediately with revised GST classifications.
To avoid filing errors, businesses can use Digital Signature Certificate (DSC) for secure GST returns.

Q7: How does this notification connect with earlier GST updates in 2021?

Answer:
Notification 08/2021 – CTR ➝ Last amendment before this, dated 30th September 2021.
Notification 13/2021 – CTR ➝ Focused on removing entries for IT software & others.
Notifications 14–18/2021 – CTR ➝ Brought larger restructuring of GST rates across textiles, footwear, services, minerals, and restaurants effective Jan 2022.
For integrated GST solutions, check Private Limited Compliance.

Q8: What should businesses do to stay compliant with this update?

Answer:
✅ Review GST classification for goods & services.
✅ Avoid using omitted entries in tax filings.
✅ Ensure IT/software invoicing reflects updated treatment.
✅ Take help from GST professionals for return filing.
Finodha’s GST Experts provide end-to-end compliance support.