Notification No. 15/2021 – Central Tax (Rate) GST Amendment

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Notification No. 15/2021 - Central Tax (Rate): Seeks to amend Notification No 11/2017- 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), sub-section (3) and sub-section (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendments further to amend in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.11/2017- Central 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. 690(E), dated the 28th June, 2017, namely:-

In the said notification, in the TABLE, -

against serial number 3,-

in column (3),in the heading “Description of Service”, in items (iii),(vi),(ix) and (x), for the words “Union territory, a local authority, a Governmental Authority or a Government Entity” the words “Union territory or a local authority” shall be substituted;

in column (3), in the heading “Description of Service”, in item (vii), for the words “Union territory, local authority, a Governmental Authority or a Government Entity” the words “Union territory or a local authority” shall be substituted;

in column (5), in the heading “Condition”, the entries against items (iii),(vi),(vii),(ix) and (x), shall be omitted;

against serial number 26, in column (3), in the heading “Description of Service”, in item (i), in clause (b), after the words, numbers, figures and brackets “Customs Tariff Act, 1975 (51 of 1975)” the words “except services by way of dyeing or printing of the said textile and textile products” shall be inserted.

2. This notification shall come into force with effect from the 1^st day of January, 2022.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: - The principal notification No. 11/2017 - Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 690 (E), dated the 28th June, 2017 and last amended by notification No. 06/2021 - Central Tax (Rate), dated the 30th September, 2021 vide number G.S.R. 687(E), dated the 30th September, 2021.

📚 Frequently Asked Questions (FAQs): Notification No. 15/2021- Central Tax (Rate)

Q1: What is Notification No. 15/2021 – Central Tax (Rate)?

Answer:
Notification No. 15/2021 – Central Tax (Rate), issued on 18th November 2021, amended Notification No. 11/2017 – Central Tax (Rate).
✔ It made significant changes regarding service descriptions and conditions for exemptions.
✔ It also added clarifications for textile processing services.
👉 Effective date: 1st January 2022.
For advisory on GST changes, consult GST Experts.

Q2: What changes were made for services provided to Government bodies?

Answer:
The words “Governmental Authority or Government Entity” were removed from certain entries (items iii, vi, vii, ix, x under Sr. No. 3).
👉 Now, exemptions apply only when services are provided to Union territory or local authority, not to Government Entities/Authorities.
For compliance in Govt contracts, check GST Compliance.

Q3: Which service conditions were omitted under this notification?

Answer:
In the GST service rate table, conditions attached to items (iii), (vi), (vii), (ix), and (x) under Sr. No. 3 were deleted.
This simplified compliance but also narrowed the scope of exemptions.
For expert help, explore GST Return Filing.

Q4: What change was made in the textile service category?

Answer:
Under Sr. No. 26, item (i)(b), relating to services under the Customs Tariff Act, 1975, an exception was added:
🚫 Services by way of dyeing or printing of textiles are excluded from the earlier concessional treatment.
For textile MSMEs, MSME Registration ensures benefits with proper GST compliance.

Q5: Why was this amendment necessary?

Answer:
The main objectives were:
✔ To rationalize GST exemptions for Government-related services.
✔ To ensure that Government Entities/Authorities are treated at par with private players.
✔ To remove concessional treatment in textile dyeing & printing, ensuring a level tax field.
Businesses can stay ahead with Private Limited Company Compliance.

Q6: From when does Notification No. 15/2021 come into effect?

Answer:
The notification came into effect on 1st January 2022, giving businesses time to update their contracts, invoices, and GST classifications accordingly.
For easy compliance, check Digital Signature Certificate (DSC).

Q7: How does this impact businesses working with Govt contracts?

Answer:
✅ Only services provided to Union territory or local authority enjoy concessional rates.
❌ Services to Government Entities/Authorities are no longer exempt.
👉 Contractors must charge & deposit GST accordingly.
Businesses can use Setup Business for GST-ready structures.

Q8: How does this connect with other 2021 GST notifications?

Answer:
Notification 15/2021 ➝ Focused on service rate changes (Govt & textiles).
Notification 16/2021 ➝ Amended exemptions for e-commerce & Govt Authorities.
Notification 17/2021 & 18/2021 ➝ Amended rates for goods & restaurant/vehicle services.
Together, these built a comprehensive GST rate restructuring effective Jan 2022.
For holistic compliance, check Private Limited Registration.

Q9: What should businesses do to comply with this notification?

Answer:
✔ Review all Government service contracts.
✔ Reassess textile processing (dyeing/printing) operations under GST.
✔ Avoid wrongly availing exemptions post 1st Jan 2022.
✔ File returns timely to avoid penalties.
Get professional support from Finodha GST Professionals.