Notification No. 21/2021 - Integrated Tax (Rate) Explained

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

Notification No. 21/2021 - Integrated Tax (Rate): Seeks to supersede notification 14/2021- IT(R) dated 18.11.2021 and amend Notification No 1/2017- 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-section (1) of section 5 of the IGST Act, 2017 (13 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, and in supersession of notification of the Government of India in the Ministry of Finance (Department of Revenue), No.14/2021- Integrated Tax (Rate), dated the 18^th November, 2021, published in the Gazette of India,

Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 817(E), dated the 18^th November, 2021, 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-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. 666(E), dated the 28th June, 2017, namely:-

In the said notification, -

in Schedule I – 5%, serial number 225 and the entries relating thereto shall be omitted;

in Schedule II – 12%, after serial number 171 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

“171A1

Footwear of sale value not exceeding Rs.1000 per pair.”

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

(Gaurav Singh)
Deputy Secretary to the Government of India

Note: - The principal notification No.1/2017-Integrated 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. 666(E), dated the 28^th June, 2017, and was last amended vide notification No. 18/2021 – Integrated Tax (Rate), dated the 28^th December, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 893(E), dated the 28^th December, 2021.

📚 Frequently Asked Questions (FAQs): Notification No. 21/2021 - Integrated Tax (Rate)

Q1: What is Notification No. 21/2021 - Integrated Tax (Rate)?

Answer:
Notification No. 21/2021 - Integrated Tax (Rate) supersedes Notification No. 14/2021-IT(R) dated 18.11.2021. It also amends Notification No. 1/2017 - Integrated Tax (Rate) dated 28.06.2017, updating GST rate applicability on certain goods and services as per GST Council’s decisions.

Q2: Why was this notification issued?

Answer:
The aim is to rationalize GST rates and align Integrated Tax treatment with updated Council recommendations. It simplifies compliance and provides clarity to businesses dealing in goods/services covered under the amended schedules.

Q3: Which earlier notification has been superseded?

Answer:
This notification supersedes Notification No. 14/2021 - IT(R), ensuring that the latest tax rate changes are applied without confusion from overlapping provisions.

Q4: What is the significance of amending Notification No. 1/2017-IT(R)?

Answer:
Notification No. 1/2017-IT(R) was the base framework for Integrated Tax (Rate). By amending it, the government updates GST applicability, exemptions, and conditions to reflect the evolving taxation needs.

Q5: How does it impact taxpayers in practical terms?

Answer:
Businesses must check if their goods/services fall under the revised categories.
ITC (Input Tax Credit) eligibility may change for some sectors.
Taxpayers need to update invoicing and return filings accordingly.
For smooth compliance, you may explore GST Compliance with Finodha experts. ✅

Q6: Is there any link between this notification and GST Council recommendations?

Answer:
Yes, most such notifications including Notification No. 21/2021-IT(R) are based on decisions from GST Council meetings. They ensure uniformity in the implementation of GST laws across India.

Q7: Do taxpayers need to update their GST returns after this notification?

Answer:
If your business deals with items affected by the changes, yes. You should reflect the revised rates in GSTR-1 & GSTR-3B filings. Finodha can guide with GST Return Filing.

Q8: How can businesses stay compliant with frequent notifications?

Answer:
Track GST updates regularly.
Consult GST Experts for professional help.
Use digital solutions for invoicing and filing to minimize errors.