Notification No. 15/2021 – IGST Rate Amendments Explained

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 15/2021 - Integrated Tax (Rate): Seeks to amend Notification No 8/2017- Integrated 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-sections (1), (3) and (4) of section 5, subsection (1) of section 6 and clauses (iii), (iv) and (xxv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with 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 the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do,

hereby makes the following amendments further to amend the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2017- Integrated 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. 683(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 and symbols “Union territory, a local authority, a Governmental Authority or a Government Entity” the words and symbols “Union territory or a local authority” shall be substituted;i
n column (3), in the heading “Description of Service”, in item (vii), for the words and symbols “Union territory, local authority, a Governmental Authority or a Government Entity” the words and symbols “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. 08/2017 - Integrated Tax (Rate), dated the 28thJune, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 683 (E), dated the 28th June, 2017 and last amended by the 30^th September ,2021.

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

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

Answer:
Notification No. 15/2021 – Integrated Tax (Rate), issued on 18th November 2021, amends Notification No. 8/2017–Integrated Tax (Rate). It makes significant changes to service descriptions, conditions, and textile-related services. The notification comes into force from 1st January 2022.

Q2: Which services were impacted under this notification?

Answer:
The notification modifies serial number 3 of the service table:
In multiple items (iii, vi, ix, x, and vii), the phrase “Union territory, a local authority, a Governmental Authority or a Government Entity” was changed to “Union territory or a local authority.”
It also removed certain conditions listed in the earlier notification.
This effectively restricts the scope of eligible authorities for concessional/exempt IGST rates.

Q3: What change was made for textile-related services? 👕

Answer:
Under serial number 26 (i)(b), services related to textile products under the Customs Tariff Act, 1975 were updated. The new condition specifies “except services by way of dyeing or printing of the said textile and textile products.”
This means dyeing and printing services on textiles will now be treated differently under GST.

Q4: From when is this amendment effective?

Answer:
The changes under Notification No. 15/2021 – Integrated Tax (Rate) are effective from 1st January 2022. Businesses providing or availing services must align compliance accordingly.

Q5: Why was this amendment necessary?

Answer:
The changes align with recommendations of the GST Council and aim to:
Simplify the tax structure on services.
Reduce ambiguity regarding which entities qualify (only Union territories and local authorities).
Clarify tax treatment of textile services, especially in the case of dyeing and printing.

Q6: How does this impact businesses in textile processing? 🧵

Answer:
Businesses involved in dyeing and printing of textiles can no longer claim the same exemptions available earlier under IGST rules. This increases tax accountability and ensures proper credit flow in the textile supply chain.

Q7: Where can I get professional help in complying with these changes?

Answer:
You can consult GST experts for guidance. For reliable assistance, visit GST Expert/GST Professional. You may also explore:
GST Compliance
GST Registration
GST Return Filing

Q8: How is this notification connected with earlier IGST changes?

Answer:
Notification No. 15/2021 amends the principal Notification No. 8/2017 – Integrated Tax (Rate). The last amendment before this was made through Notification No. 6/2021 – Integrated Tax (Rate) dated 30th September 2021. This shows a continuous effort to update GST law in line with sectoral needs.

Q9: What should businesses do next? ✅

Answer:
Review contracts and invoices with Union territories and local authorities.
Re-assess exemptions if you are providing textile services, especially dyeing/printing.
Consult a GST professional to ensure correct compliance and avoid disputes.