Important Keyword: Notification No. 17/2021 – Central Tax (Rate), GST restaurant service amendment, reverse charge motor vehicle GST, specified premises definition GST, GST law 2022 changes, Notification No. 17/2021 Central Tax Rate, GST restaurant amendment, reverse charge motor vehicle, omnibus GST amendment, GST specified premises definition,
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[F. No. 354/207/2021-TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, 18th November, 2021.
Notification No. 17/2021 - Central Tax (Rate): Seeks to amend Notification No 17/2017- Central Tax (Rate) dated 28.06.2017.
[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]
G.S.R......(E).- In exercise of the powers conferred by sub-section (5) of section 9 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 amendments further to amend the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.17/2017- 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. 696(E) dated the 28th June, 2017, namely:-
- In the notification,-
- in clause (i), for the words “and motor cycle;”, the words “, motor cycle, omnibus or any other motor vehicle;” shall be substituted;
- after clause (iii), the following clause shall be inserted, namely:-
“(iv) supply of restaurant service other than the services supplied by restaurant, eating joints etc. located at specified premises.”
- In the said notification, in Explanation, -
- in item (b), for the words, brackets, numbers and figures “and “motor cycle” shall have the same meanings as assigned to them respectively in clauses (22), (25) and (26) of section 2 of the Motor Vehicle Act, 1988 (59 of 1988).”, the words, brackets, numbers and figures ,“, motor cycle, motor vehicle and omnibus shall have the same meanings as assigned to them respectively in clauses (22), (25), (27), (28) and (29) of section 2 of the Motor Vehicle Act, 1988 (59 of 1988).” shall be substituted;
- after item (b), the following shall be inserted namely, -
“(c) specified premises means premises providing hotel accommodation service having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent.”
2. This notification shall come into force with effect from the 1st day of January, 2022.
(Rajeev Ranjan)
Under Secretary to the Government of India
Note:- The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 17/2017 - Central Tax (Rate), dated the 28th June, 2017, vide number G.S.R. 696 (E), dated the 28th June, 2017 and last amended by notification No. 23/2017 - Central Tax (Rate), dated the 22nd August, 2017 vide number G.S.R. 1048(E), dated the 22nd August, 2017.
📚 Frequently Asked Questions (FAQs): Notification No. 17/2021- Central Tax (Rate)
Q1: What is Notification No. 17/2021 – Central Tax (Rate)?
Answer:
Notification No. 17/2021 – Central Tax (Rate), issued on 18th November 2021, amended Notification No. 17/2017 – Central Tax (Rate). It expanded the scope of reverse charge to include additional vehicles and clarified GST applicability on restaurant services (other than in specified premises).
👉 This amendment came into effect from 1st January 2022.
For GST compliance assistance, consult GST Experts.
Q2: What changes were made regarding motor vehicles?
Answer:
Earlier, the notification covered “motor cab and motor cycle”. Now, Notification 17/2021 replaced it with:
🚗 Motor cycle
🚌 Omnibus
🚙 Any other motor vehicle
Thus, reverse charge applicability extended beyond taxis to a broader category of vehicles.
For transport businesses, GST Compliance Services ensure smooth filing.
Q3: What is the new clause (iv) about restaurant services?
Answer:
The notification inserted clause (iv):
“Supply of restaurant service other than the services supplied by restaurant, eating joints etc. located at specified premises.”
👉 Meaning: Restaurant services outside luxury hotels (declared tariff above ₹7,500/day) fall under reverse charge.
For hospitality businesses, check GST Registration.
Q4: What are “specified premises” under this notification?
Answer:
Specified premises refer to hotel accommodation services with declared tariff above ₹7,500 per unit per day.
✔ Restaurant services in such hotels follow forward charge.
✔ Restaurant services outside such hotels may fall under reverse charge.
For hospitality compliance, see GST Return Filing.
Q5: How does this amendment affect restaurants and eating joints?
Answer:
🍽️ Restaurants located within luxury hotels (tariff > ₹7,500/unit/day): GST payable under forward charge.
🍴 Restaurants outside such premises: GST covered under reverse charge in certain cases.
This classification ensures clarity in GST applicability. Businesses can streamline operations with Setup Business.
Q6: Which law is cross-referenced for defining vehicles?
Answer:
Notification 17/2021 references Section 2 of the Motor Vehicles Act, 1988, defining:
Clause (22): Motor cab
Clause (25): Motor cycle
Clause (27–29): Motor vehicle, Omnibus
For corporate structuring in transport/logistics, check Private Limited Registration.
Q7: From when did these changes take effect?
Answer:
The amendments under Notification No. 17/2021 – Central Tax (Rate) became effective from 1st January 2022. Taxpayers had to update their invoicing and classification systems accordingly.
To avoid penalties, get professional help via ROC Compliance.
Q8: How does this notification link with Notification No. 18/2021 – Central Tax (Rate)?
Answer:
Notification 17/2021 ➝ Focused on reverse charge for vehicles & restaurants.
Notification 18/2021 ➝ Amended rate schedules for goods (edible oils, ores, LED devices, etc.).
👉 Together, they reflect GST law tightening + classification updates effective Jan 2022.
For end-to-end compliance, check One Person Company (OPC).
Q9: What should businesses do to comply with this notification?
Answer:
✅ Update contracts with vehicle owners/operators.
✅ Revisit GST treatment of restaurant services.
✅ Train staff on “specified premises” applicability.
✅ File returns on time to avoid penalties.
For compliance ease, Digital Signature Certificate (DSC) enables faster GST filing.
Download PDF: Notification No. 17/2021- Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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