Important Keyword: Notification No. 21/2021 – Union Territory Tax (Rate), GST footwear rate 2022, UTGST amendment, Notification 1/2017 update, Notification No. 21/2021 – Union Territory Tax (Rate), GST footwear rate 2022, UTGST amendment January 2022, Notification 1/2017 update, CBIC footwear GST, GST rate change for footwear, Finodha GST expert
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[F. No. 354/79/2021-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 31st December, 2021
Notification No. 21/2021 - Union Territory Tax (Rate): Seeks to supersede notification 14/2021- UTT(R) and 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 UTGST 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, and in supersession of notification of the Government of India in the Ministry of Finance (Department of Revenue), No.14/2021- Union Territory Tax (Rate), dated the 18th November, 2021, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 818(E), dated the 18th 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-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 I – 2.5%, serial number 225 and the entries relating thereto shall be omitted;
- in Schedule II – 6%, after serial number 171 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -
| “171A1 | 64 | Footwear of sale value not exceeding Rs.1000 per pair.” |
2. This notification shall come into force on the 1st day of January, 2022.
(Gaurav Singh)
Deputy 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 vide notification No. 18/2021 – Union Territory Tax (Rate), dated the 28th December, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 894(E), dated the 28th December, 2021.
📚 Frequently Asked Questions (FAQs): Notification No. 21/2021 - Union Territory Tax (Rate)
Q1️⃣: What is Notification No. 21/2021 – Union Territory Tax (Rate)? 🧾
Answer:
It is a GST rate amendment notification that modifies Notification No. 1/2017 – Union Territory Tax (Rate). It updates the tax treatment of footwear valued up to ₹1000 per pair, raising the rate from 2.5% to 6% under UTGST. This aligns footwear taxation under UTGST, CGST, and SGST frameworks.
👉 Need guidance on GST amendments? Visit GST Compliance Services.
Q2️⃣: When did this notification come into effect? 📅
Answer:
The notification became effective from 1st January 2022. From this date, the revised GST rates on footwear under ₹1000 are applicable across Union Territories.
Q3️⃣: Which earlier notification was superseded by this one? 🔄
Answer:
Notification No. 14/2021 – Union Territory Tax (Rate), dated 18th November 2021, was superseded by Notification No. 21/2021 to ensure uniformity and clarity in GST footwear taxation.
Q4️⃣: What are the major amendments introduced by Notification No. 21/2021? ⚙️
Answer:
The amendments include:
Deletion of Serial No. 225 in Schedule I (2.5% rate list).
Insertion of Serial No. 171A1 in Schedule II (6% rate list) for: “Footwear of sale value not exceeding ₹1000 per pair.”
This effectively increased GST on budget footwear from 5% to 12% (combined CGST + UTGST).
Q5️⃣: Why did the government revise the GST rate on footwear? 🎯
Answer:
The revision aims to simplify the footwear taxation structure and align it with the overall GST framework. The rate rationalization reduces classification disputes and ensures equal treatment across all price ranges, avoiding tax evasion in low-value footwear sales.
Q6️⃣: What sections of the GST Acts empower this change? ⚖️
Answer:
This notification is issued under:
Section 7(1) of the UTGST Act, 2017, and
Section 15(5) of the CGST Act, 2017,
which authorize the government to specify or amend tax rates in public interest based on GST Council recommendations.
(Focus Keyword Cluster: Notification No. 21/2021 – Union Territory Tax (Rate), Section 7 UTGST, Section 15 CGST)
Q7️⃣: How does this impact footwear manufacturers and traders? 🏭
Answer:
Footwear manufacturers must now charge 12% GST on all shoes priced up to ₹1000.
Retailers must update billing systems and price labels accordingly.
Compliance is crucial to avoid mismatches in GST return filing.
For support, check out GST Return Filing Services.
Q8️⃣: How does this relate to Notification No. 1/2017 – Union Territory Tax (Rate)? 🔗
Answer:
Notification 21/2021 amends the original rate schedule (Notification 1/2017) by changing tax brackets for footwear. The 2017 notification initially categorized goods and services under 0%, 2.5%, 6%, 9%, and 14% UTGST slabs — this update modifies the 2.5% slab entries.
Q9️⃣: Who benefits from this clarification? 👩💼👨💼
Answer:
While the rate increase affects retailers and small traders, the clarity helps:
✅ Manufacturers streamline billing.
✅ The government improve revenue collection.
✅ Consumers understand transparent pricing.
For compliance and setup support, explore Setup Business in India and MSME Registration.
Q🔟: Where can taxpayers get expert advice on UTGST amendments? 💡
Answer:
Consult professional advisors at Finodha.in for:
🧾 GST Compliance
💼 Private Limited Company Registration
💻 Digital Signature Certificate (DSC)
🏢 One Person Company (OPC) Registration
They can guide you through every GST update and compliance requirement.
📘 Summary
Notification No. 21/2021 – Union Territory Tax (Rate) revised the GST structure for footwear up to ₹1000 per pair, effective 1st January 2022, by increasing the UTGST rate from 2.5% to 6%.
This step ensures uniform GST treatment across states and Union Territories while reducing ambiguity for traders and manufacturers.
For assistance with GST compliance, visit:
Download PDF: Notification No. 21/2021 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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