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[F.No.354/207/2021-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 27th October, 2021
Notification No. 13/2021 - Union Territory Tax (Rate): Seeks to amend Notification No 1/2017- Union territory 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 7 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) read with sub-section (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-Union Territory Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 710(E), dated the 28th 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-Union territory Tax (Rate), dated the 28th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 710(E). , dated the 28th June, 2017, and was last amended by notification No. 08/2021 – Union territory Tax (Rate), dated the 30th September, 2021,published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 703(E)., dated the 30th September, 2021.
📚 Frequently Asked Questions (FAQs): Notification No. 13/2021 - Union Territory Tax (Rate)
Q1️⃣: What is Notification No. 13/2021 – Union Territory Tax (Rate)? 🧾
Answer:
This notification updates Notification No. 1/2017 – UTGST (Rate) by:
✅ Removing Serial No. 243 from Schedule II (6%), and
✅ Deleting the phrase “in respect of Information Technology software” from Serial No. 452P under Schedule III (9%).
It ensures better clarity in classifying goods and services related to IT and technology.
👉 For expert GST guidance, visit Finodha GST Professionals.
Q2️⃣: When did this notification come into effect? 📅
Answer:
The notification became effective from 27th October 2021, as published in the Gazette of India (Extraordinary, Part II, Section 3).
Q3️⃣: Which earlier notification has been amended? 🔄
Answer:
This amends Notification No. 1/2017 – Union Territory Tax (Rate) dated 28th June 2017, which defines GST rates for goods and services under the UTGST Act, 2017.
Q4️⃣: What specific entries were removed under Schedule II (6%)? ⚙️
Answer:
Entry S. No. 243 and all its related descriptions were omitted from Schedule II (6%).
This implies that the particular goods or services listed under that entry will now either be reclassified or taxed under a different schedule.
(Focus Keyword: Notification No. 13/2021 – Union Territory Tax (Rate), GST Schedule II amendment)
Q5️⃣: What change was made to Schedule III (9%)? 💻
Answer:
In Schedule III (9%), at S. No. 452P, the words “in respect of Information Technology software” were removed.
This broadens the GST scope, making the classification inclusive of more digital or software-related items that were earlier limited to specific IT categories.
Q6️⃣: Why was “Information Technology software” removed from Schedule III? 🧠
Answer:
The removal aims to:
✅ Simplify classification of digital goods and IT services.
✅ Avoid confusion between software goods and software services.
✅ Align with updated HSN codes and global digital tax guidelines.
This change ensures a more streamlined and technology-neutral GST structure.
For compliance and filing support, visit GST Compliance Services.
Q7️⃣: How does this amendment impact IT companies and software providers? 🖥️
Answer:
Software providers now face standard GST rates (9% UTGST + 9% CGST = 18%), without sub-categorization.
Custom software, SaaS platforms, and digital downloads are treated uniformly under GST.
Simplified classification reduces disputes during audits and ITC claims.
For business compliance assistance, check Setup Business in India.
Q8️⃣: What legal provisions empower this amendment? ⚖️
Answer:
This notification was issued under:
Section 7(1) of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), and
Section 15(5) of the Central Goods and Services Tax Act, 2017 (12 of 2017),
on the recommendation of the GST Council.
(Focus Keyword: Notification No. 13/2021 – Union Territory Tax (Rate), Section 15(5) CGST Act)
Q9️⃣: How does this amendment relate to digital taxation and GST reforms? 🌐
Answer:
The update aligns with India’s push toward digital economy compliance, ensuring that software, e-commerce, and cloud-based solutions fall under a consistent GST framework.
It supports the Make in India Digital Vision by eliminating outdated clauses that restricted growth in the IT sector.
For IT business registration, visit Private Limited Company Registration.
Q🔟: Where can taxpayers get professional help on this and related GST updates? 💡
Answer:
Businesses can consult Finodha GST Experts for personalized tax solutions, including:
🧾 GST Registration
💼 GST Return Filing
📈 GST Compliance
💡 Income Tax Return (ITR)
🏢 Private Limited Compliance
Download PDF: Notification No. 13/2021 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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